NOTICE OF COMPULSORY LAND ACQUISITION AFFECTING 3 OF CIT’S 43 PROPERTIES

Cambridge Industrial Trust Management Limited, the Manager of Cambridge Industrial
Trust (“CIT”) (“the Company”) wishes to announce that it has received a formal notice
from Singapore Land Authority (“SLA”) on 11 January 2011 with regard to the compulsory
acquisition of land on Tuas Road, Pioneer Road, Tuas West Road, Tuas West Drive and
Tuas South Avenue 3 for the construction of Tuas West Mass Rapid Transit (“MRT”)
extension and road works along the Pan Island Expressway, Tuas Road, Pioneer Road, Tuas West Road, Tuas West Drive and Tuas South Avenue 3.

Based on the Company’s initial assessment, three of CIT’s 43 properties will be affected to varying degrees by this land acquisition:
1) 30 Tuas Road (Lot No 1289X pt Mukim 7)
2) 120 Pioneer Road (Lot No 3237M pt Mukim 7); and
3) 1 Tuas Avenue 3 (Lot 1422X Mukim 7)
All or part of the land where these properties are situated will be possessed by the Government by January 2013.
The relevant authorities will be arranging for their representatives to discuss the details of
the compulsory land acquisition with the Company, including details of compensation.
The Company will continue to assess the situation and will issue further announcements when it has more information.

My comments:
Base on the gross rental income in FY 2009, the land acquisition of these 3 properties will reduce CIT's revenue by approximately 5.5 mil (or 1.375 mil per quarter).
This will in turn reduce the DPU per quarter starting in year 2013. As for how much reduction in DPU and compensation amount given by SLA, more information needs to be provided.
Questions that I have:
(1) Amout of DPU reduction
(2) Are the 3 properties fully paid up? I suppose not since CIT gearing is pretty high.
(3) How much is SLA compensating
(4) What is CIT's plan on using the compensation. To pay off debts or more acquisition in line.