MASNET: Acquisition Of Units In K-Reit Asia

Keppel Land Limited (the "Company") wishes to announce that its wholly-owned subsidiary, K-REIT Asia Management Limited ("KRAM") as manager of K-REIT Asia, has on 30 October 2006 acquired 585,965 new units in K-REIT Asia ("Units") issued at a price of S$1.6770 per Unit in payment of 100% of its management fees for the period from 1 July 2006 to 30 September 2006.

This mode of payment of management fees to KRAM in the form of Units is provided for in the trust deed constituting K-REIT Asia.

With this transaction, the total number of Units held by the Company (through its wholly-owned subsidiaries), including the 585,965 new Units held through KRAM, is 97,952,894 Units which represent approximately 40.54% of the total number of issued Units as at 30 October 2006.

The above transaction is not expected to have any significant impact on the consolidated earnings per share and net tangible asset per share of the Company for the current financial year.

None of the directors and substantial shareholders of the Company has any interest, direct or indirect in the transaction, save their interests by way of their directorships and/or shareholdings, as the case may be, in KRAM.

Submitted by Choo Chin Teck, company secretary, to the SGX on 2 November 2006