City Developments : CDL Statement on UK’s European Union (EU) Referendum Result

24 June 2016

City Developments Limited (CDL) continues to have confidence in the long-term fundamentals of the UK economy and our strategy of targeting predominantly UK nationals for our residential developments.

Specifically, in the last two years, all of our acquisitions in the UK have been outside Central London and a majority of our UK development projects (i.e. Reading, Croydon, Teddington Studios and Stag Brewery land sites) cater to the local market there. This helps to insulate our projects from any potential impact of UK's impending exit from the EU.

On a Group level, our exposure to the UK* is:

• Revenue exposure - 12%

• Asset exposure - 11%

• Debt exposure - 12%

Correspondingly, the Group's exposure to the rest of Europe is not significant.

The Group manages its foreign exchange exposure by a policy of a matching receipts and payments, and asset purchases and borrowings in each individual country, so as to create a natural hedge.

The Group's 65.3% owned London-listed hotel subsidiary, Millennium & Copthorne Hotels plc (M&C), holds a diverse global portfolio, with 22 of its 126 hotels situated in the UK*. Please refer to this link for M&C's statement on the EU referendum result.

* As at 31 December 2015

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