Morgan Stanley

Sale of Chifley Tower and Royal Pines Resort completed

May 26, 2005

GIC Real Estate to partner with Morgan Stanley

Sydney —

Morgan Stanley (NYSE: MWD) and GIC Real Estate announced today completion of the acquisition of Chifley Tower and Plaza (Sydney) and Royal Pines Resort (Gold Coast) from MID Australia Pty Ltd.

Sonny Kalsi, a Managing Director and Head of Morgan Stanley Real Estate Asia, said, “We are very pleased to complete the acquisition of these landmark assets in the dynamic and sophisticated Australian market. Morgan Stanley identified GIC Real Estate as the best group to partner with for the ownership of Chifley Tower.”

Steve Harker, CEO of Morgan Stanley Australia, said, “This is another example of our strategic approach to operating in Australia, where great local connectivity and insight leverages our strong global platform.”

Dr. Seek Ngee Huat, President of GIC Real Estate said, "We are delighted to add Chifley Tower and Plaza to our portfolio of properties in Sydney. The building’s excellent location, high quality of construction and diverse tenancy base satisfies our objective of owning core assets in gateway cities.

“We see the Sydney office market characterised by a limited supply of pre-committed new office stock and decreasing vacancy rates for premium space. We believe that the underlying market fundamentals will favour rental growth.”

A representative of MID’s Australian businesses said that given the strength of the market, and the interest in the company's other assets following the sale of the ANA Hotel, Gold Coast, it was judged to be a good time to maximise benefit for all stakeholders by taking advantage of the further opportunity of selling Chifley Tower and the Royal Pines Resort.

MID added that the financial outcome of the transaction was within MID’s expectations for the high quality assets involved.

The company also said it wanted to thank all those who contributed to the operation of MID’s Australian real estate assets, and wish them all success under the new ownership.

Chifley Tower and Plaza is a landmark Sydney property comprising 40 levels of premium office space, an integrated retail component over three levels and basement parking for 363 cars. The building has a prime CBD location with the upper levels providing uninterrupted views of the Harbour, Opera House and surrounds. Construction was completed in 1992 to a very high technical specification. Key tenants include domestic and international investment banks and legal firms.

Royal Pines Resort is located on Queensland’s Gold Coast and is one of the largest developments of its type in Australia comprising a 330 room hotel, comprehensive convention facilities, a 27 hole championship golf course and other leisure facilities, and a substantial residential development and land bank on 200 hectares.

Royal Pines Resort has been the venue for the Australian Ladies Masters Golf Tournament every year since 1992 and also hosts the annual Uncle Toby’s Ladies Tennis Hard Court Championships as a lead-up event to the Australian Open.

“It is our intention to continue developing Royal Pines Resort as a world class hotel and convention, residential, golfing and leisure venue,” Sonny Kalsi said.

The transaction has gained all necessary regulatory approvals, including the Australian Foreign Investment Review Board.

About Morgan Stanley

Morgan Stanley is a global financial services firm and a market leader in securities, investment management and credit services. With more than 600 offices in 28 countries, Morgan Stanley connects people, ideas and capital to help clients achieve their financial aspirations.

Morgan Stanley Real Estate is comprised of three major global businesses: Investing, Banking, and Lending. Since 1991, Morgan Stanley has acquired more than US$58.4 billion of real estate assets worldwide and currently manages US$32.5 billion in real estate assets on behalf of its clients. Using its own capital, Morgan Stanley also originates upwards of US$7 billion in commercial mortgages annually. In addition, Morgan Stanley Real Estate provides a complete range of investment banking services including merger, acquisition and restructuring advisory and recapitalizations, as well as public and private debt and equity financing. Morgan Stanley established its real estate organization in 1969.

The Morgan Stanley Real Estate Funds (MSREF) are Morgan Stanley sponsored equity funds within the Firm’s Real Estate investing group. MSREF pursues real estate investments worldwide.

About GIC Real Estate

Headquartered in Singapore, GIC Real Estate is the real estate investment arm of the Government of Singapore Investment Corporation, which manages the foreign reserves of Singapore. GIC Real Estate’s mandate and mission is to astutely invest in all real 4 estate-related assets, outside of Singapore, covering all property sectors and product types, to achieve superior risk-adjusted returns for its global portfolio.

GIC Real Estate’s approach to investments is shaped by its focus on larger investments with longer-term horizons. In a business that is intrinsically local in nature, GIC Real Estate places a lot of emphasis on establishing strategic alliances with strong local partners and managers. In return, it brings to the partnership its experience and knowledge garnered from its global investment activities. GIC Real Estate’s multi-billion dollar portfolio spans over 30 countries, paralleled by few in the world. Presently GIC Real Estate has over 110 staff in Singapore, San Francisco, New York, Tokyo and London.


For GIC Real Estate: Ms Celeste Tay

VP, Administration & Corporate Affairs

GIC Real Estate Pte Ltd

168 Robinson Road #37-01

Capital Tower

Singapore 068912

Tel: (65) 6889 8888 (Main)

Fax: (65) 6889 6812

For Morgan Stanley: Hugh Fraser

FCC Partners

Tel: 0412 677 081/ int + 61 412 677 081