GIC Real Estate Acquires 2.8% Stake in Shimao Property Holdings Limited from Morgan Stanley Real Estate

Beijing, Singapore —

HONG KONG, February 27, 2007 - Morgan Stanley Real Estate today announced that GIC Real Estate Pte Ltd (GIC RE) has purchased an approximate 2.8% stake in Shimao Property Holdings Ltd (813.HK) from Morgan Stanley Real Estate.

With the purchase, GIC RE will become the third largest investor in Shimao, while Morgan Stanley Real Estate will remain the second largest shareholder with an approximate 5% stake in the company.

Commenting on the purchase, a GIC RE spokesperson said: "This transaction demonstrates our continued long term confidence in China and in its real estate sector."

A Morgan Stanley Real Estate spokesperson added: "Shimao is one of the largest and best-performing pan-China real estate developers. Given its large land bank of over 200 million square feet, its strong management team, brand and execution record, we believe that the company is well positioned to continue to deliver significant shareholder value. As such, Morgan Stanley Real Estate plans to remain a significant shareholder in the company."

Morgan Stanley Real Estate is comprised of three major global businesses: Investing, Banking and Lending. Since 1991, Morgan Stanley has acquired $102.0 billion of real estate assets worldwide and currently manages $60.5 billion in real estate assets on behalf of its clients. In addition, Morgan Stanley Real Estate provides a complete range of market-leading investment banking services to its clients, including advice on strategy, mergers, acquisitions and restructurings, as well as underwriting public and private debt and equity financings. Morgan Stanley is also a global leader in real estate lending offering approximately $156.0 billion of CMBS through the capital markets since 1997, including $35.5 billion in 2006. For more information about Morgan Stanley Real Estate, go to www.morganstanley.com/realestate.

Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, investment management, wealth management and credit services. The Firm's employees serve clients worldwide including corporations, governments, institutions and individuals from more than 600 offices in 30 countries. For further information about Morgan Stanley, please visit www.morganstanley.com (English) and www.morganstanleychina.com (Chinese).

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Nick Footitt

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