K-REIT ASIA SECURES FIXED-RATE MORTGAGE LOANS OF APPROXIMATELY S$190 MILLION

The Board of Directors of K-REIT Asia Management Limited (the "Company"), as manager of KREIT Asia, wishes to announce that K-REIT Asia has today secured two fixed rate mortgage loans (the "Loans") totalling approximately S$190 million from Blossom Assets Ltd. to refinance an existing bridge loan that was used to purchase the current portfolio of four buildings on three properties under K-REIT Asia, namely Keppel Towers and GE Tower, Bugis Junction Towers and strata title units in Prudential Tower (the "Properties"). The Loans consist of a Tranche A Mortgage Loan of approximately S$160 million and a Tranche B Mortgage Loan of approximately S$30 million. Both Loans are secured by the Properties and assets of K-REIT Asia relating to the Properties.

Blossom Assets Ltd., a special purpose vehicle incorporated in Singapore, is using the proceeds of its rated €95.4 million (approximately S$190 million) secured floating rate notes issued under its S$3,000,000,000 Multicurrency Secured Medium Term Note Programme to provide the Loans to K-REIT Asia.

The Loans are not expected to have any material impact on the distribution per unit of K-REIT Asia for its first financial period which is from 28 November 2005 to 31 December 2006.

By Order of the Board
K-REIT Asia Management Limited
(Company Registration Number: 200411357K)
As manager of K-REIT Asia

Choo Chin Teck
Company Secretary
17 May 2006

The financial advisor for the introduction of the units of K-REIT Asia to the Main Board of the SGX-ST is Deloitte & Touche Corporate Finance Pte Ltd.