GIC REAL ESTATE, LEHMAN BROTHERS REAL ESTATE PARTNERS AND REALSTAR GROUP FORM JOINT VENTURE TO ACQUIRE PORTFOLIO OF 73 HOTELS IN UNITED KINGDOM FOR £1 BILLION

SINGAPORE AND LONDON, 10th March 2005

GIC Real Estate Pte Ltd (GIC RE), through its affiliate, has signed an agreement with Lehman Brothers Real Estate Partners (LBREP) and the Realstar Group (Realstar) to acquire a portfolio of 73 hotels in the United Kingdom from the Intercontinental Hotel Group (IHG). The deal is valued at approximately £ 1 billion.

The 73 hotels comprising 12,841 rooms, consist of 4 Crowne Plaza hotels, 68 Holiday Inn hotels and 1 Express by Holiday Inn hotel, located in London and throughout the UK, including the 900 room Holiday Inn Forum in Kensington and the Crown Plaza at Heathrow airport.

The portfolio will continue to be managed by IHG under long term management contracts and the consortium has agreed to invest a further incremental £21m for capital improvements. LBREP and Realstar will asset manage the portfolio on behalf of the consortium.

Announcing the transaction, Dr. Seek Ngee Huat, President of GIC RE said, “We are delighted to be extending our global hotel portfolio in this venture with our partners Lehman Brothers Real Estate Partners and Realstar as well as the strong Intercontinental brands.”

Mark H. Newman, Managing Director of Lehman Brothers Real Estate Partners, LP stated: “We are very pleased to acquire this portfolio from Intercontinental Hotels Group plc and look forward to working together with them and our joint venture partners, GIC Real Estate and Realstar Group.”

Jonas Prince, Chairman, Realstar Group said “This acquisition represents a significant opportunity for both Lehman Brothers Real Estate Partners and Realstar as these properties offered a tremendous value to us in terms of real estate and brand equity. We are very pleased to be working in tandem with our joint venture partners and IHG in ensuring the continued integrity and viability of these properties.”

About GIC RE
Headquartered in Singapore, GIC RE is the real estate investment arm of Government of Singapore Investment Corporation (GIC) that manages the foreign reserves of Singapore. The company manages a multi-billion dollar portfolio of direct and indirect property investments worldwide.