Sembenviro KK Asia enters into put & call option agreement for sale & leaseback of property at Tampines Street 92

December 18, 2006

SembCorp Industries Ltd (“SembCorp”) announces that SembEnviro KK Asia, a subsidiary of SembCorp’s wholly-owned SembCorp Environmental Management, has entered into a Put and Call Option Agreement (“option agreement”) with HSBC Institutional Trust Services, as trustee of Mapletree Logistics Trust (“MapletreeLog”), for the sale and leaseback of its property at 9 Tampines Street 92, Singapore 528871.

Under the option agreement, MapletreeLog has been granted a call option by SembEnviro KK Asia to purchase the aforementioned property, while SembEnviro KK Asia has been granted a put option to require MapletreeLog to purchase the property. The sale of the property is expected to be completed within three months subject to conditions precedent being fulfilled.

Upon completion, the proceeds from the transaction would be S$11.0 million. The net book value of the property as of December 2006 is S$6.2 million. The difference between the proceeds and the fair value of the property will be amortised over the 10-year leaseback period.

This transaction does not have any material financial impact on SembCorp for the financial year ending December 31, 2006.