CDL HOSPITALITY TRUSTS EQUITY FUND RAISING

• Offer and placement of 120,162,795 New Stapled Securities (the “New
Stapled Securities”) via preferential offering and private placement (the
“Equity Fund Raising”)
• Private Placement approximately 24 times subscribed
• Preferential Offering opens on Monday, 9 July 2007 at 9.00 a.m. and closes
on Friday, 13 July 2007
M&C REIT Management Limited, as manager of CDL Hospitality Real Estate Investment Trust(the “H-REIT Manager”), and M&C Business Trust Management Limited, as trustee-manager of CDL Hospitality Business Trust (the “HBT Trustee-Manager”), are pleased to announce that the private placement of New Stapled Securities to institutional and other investors under the Equity Fund Raising is approximately 24 times subscribed at S$2.52 per New Stapled Security, which is the top end of the pricing range. Accordingly, the issue price for the Private Placement has been finalised at S$2.52 per New Stapled Security. The Equity Fund Raising comprises the offer and placement of 120,162,795 New Stapled Securities (the “New Stapled Securities’) in CDL Hospitality Trusts (“CDLHT”) by way of:

(i) a preferential offering of 107,162,795 New Stapled Securities to Singapore Registered Security Holders at an issue price of S$2.45 per New Stapled Security on the basis of three New Stapled Securities for every 20 existing Stapled Securities held as at 5.00 p.m. on 4 July 2007, fractions of a New Stapled Security to be disregarded and taking into consideration the Rounding Mechanism (the “Preferential Offering”); and

(ii) a placement of 13,000,000 New Stapled Securities to institutional and other investors(the “Private Placement”) at an issue price of S$2.52 per New Stapled Security. The issue price for the Private Placement of S$2.52 per New Stapled Security represents a discount of approximately 5.6 percent to the volume weighted average price for trades done on Singapore Exchange Securities Trading Limited (the “SGX-ST”) on 5 July 2007, being the full market day immediately preceding the signing of the Placement Agreement entered into between the H-REIT Manager, the HBT Trustee-Manager and the Joint Lead Managers and Underwriters.

The issue price for the Preferential Offering of S$2.45 per New Stapled Security and represents a further discount of approximately 2.8 percent to the issue price for the Private Placement and a discount of approximately 8.2 percent to the volume weighted average price for trades done on the SGX-ST on 5 July 2007.DBS Bank Ltd is the sole financial advisor for the Equity Fund Raising. Citigroup Global Markets Singapore Pte. Ltd. and DBS Bank Ltd are the joint lead managers and underwriters for the Equity Fund Raising (the “Joint Lead Managers and Underwriters”).The Preferential Offering gives existing Singapore Registered Security Holders an opportunity to increase their investment in CDLHT and tap into the growth of the hospitality sector in Singapore. The H-REIT Manager and the HBT Trustee-Manager expect to raise net proceeds of about S$287 million and intend to use the net proceeds to primarily repay certain indebtedness and for other general corporate and working capital purposes. The H-REIT Manager and the HBT Trustee-Manager believe that the repayment of certain existing indebtedness will create additional debt headroom for CDLHT and offer greater flexibility to make further acquisition of yield-accretive assets that will benefit Security Holders. In June this year, CDLHT announced the completion of the S$219.8 million acquisition of Novotel Clarke Quay Hotel in Singapore, boosting its portfolio of assets under management by more than 20% to S$1.34 billion.


The Preferential Offering will open for subscription via Acceptance Form and ATMs of Participating Banks on 9 July 2007 at 9.00 a.m., and close on 13 July 2007 at 4.45 p.m. for subscriptions via Acceptance Form and at 9.30 p.m. for subscriptions via ATM of Participating Banks. The expected date and time for listing of the New Stapled Securities on the SGX-ST is 19 July 2007 at 9.00 a.m..

In relation to the initial public offering of stapled securities in CDLHT, each comprising one unit in CDL Hospitality Real Estate Investment Trust (“H-REIT”) and one unit in CDL Hospitality Business Trust (“HBT”), the joint financial advisers, global coordinators and bookrunners were DBS Bank Ltd and BNP Paribas Peregrine (Singapore) Ltd, and the joint underwriters were DBS Bank Ltd and BNP Paribas (acting through its Singapore Branch).

Last done price: $2.65 SGD

Source: CDL Hospitality Trusts