UOA REAL ESTATE INVESTMENT TRUST (UOA REIT) ACQUISITION BY OSK TRUSTEES BERHAD (TRUSTEE) (ON BEHALF OF UOA

REIT) FROM MAGNA TIARA DEVELOPMENT SDN BHD (MAGNA TIARA OR THE VENDOR) OF A FREEHOLD LAND HELD UNDER PT 7525 H.S.(D) 112996, BANDAR KUALA LUMPUR, DAERAH KUALA LUMPUR, WILAYAH PERSEKUTUAN MEASURING APPROXIMATELY 3,883 SQUARE METERS TOGETHER WITH A 5 STOREY OFFICE BUILDING WITH 2 MEZZANINE FLOORS AND 3 LEVELS OF BASEMENT CAR PARK KNOWN AS WISMA UOA PANTAI AND LOCATED AT NO.11, JALAN PANTAI JAYA, 59200 KUALA LUMPUR (UOA PANTAI) (ACQUISITION)

1. INTRODUCTION Further to the announcement dated 6 November 2007, UOA Asset Management Sdn Bhd (UOAAM or the Manager), the management company of UOA REIT wishes to announce that the Trustee has on 16 January 2008 entered into a Sale & Purchase Agreement (SPA) with Magna Tiara pursuant to the Acquisition.

2. DETAILS OF THE ACQUISITION 2.1 Salient terms and condition of the Acquisition The salient terms and conditions of the Acquisition are as follows:(i) (ii) a cash consideration of RM86,000,000-00; the approval of OSK Trustee Berhad (as Trustee for UOA REIT) in accordance with the provisions of the Deed constituting UOA REIT dated 28 November 2005 (Trust Deed); the approval of the shareholders of the Vendor, if required; the approval or consent of any relevant third party or any relevant public authority, if required;

(iii) (iv)

2.2 Information on UOA Pantai UOA Pantai, which bears address at No.11, Jalan 4/83A, Jalan Pantai Jaya, 59200, Kuala Lumpur, is a five (5) storey office building with 2 mezzanine floors and 3 levels of basement car park erected on a piece of freehold land held under PT 7525 H.S.(D) 112996, Bandar Kuala Lumpur, Daerah Kuala Lumpur, Wilayah

Persekutuan. It is located just in front of Menara TM and enjoys a direct frontage to the Federal Highway.
Postal Address Approximate age of building (as at December 2007) Gross land area Gross built-up area Net lettable area Rented area No. of car park bays Existing use Appraised value (as at 6 September 2007) Occupancy rate (as at 6 December 2007) Number of tenants (as at 6 December 2007) : : : : : : : : : : : No. 11, Jalan 4/83A, Jalan Pantai Jaya, 59200, Kuala Lumpur. Five (5) months 3,883 sq. m. 294,543 sq. ft. 157,481 sq. ft. 135,951 sq. ft. 272 Office suites/ show rooms/ retail units and car park bays RM93,100,000 86%

7
Name of tenant Kementerian Perumahan dan Kerajaan Tempatan Tenaga Nasional Berhad Financial Reporting Foundation Totalap Sdn Bhd ALD Automative Sdn Bhd TH Liew & Partners Vida Partners Sdn Bhd % of rented area occupied 67.7 13.1 5.4

List of tenants (as at 6 December : 2007)

4.0 4.7 3.1 2.0

Land tenure Encumbrances

: :

Term in perpetuity (Freehold) A first party legal charge in favor of HSBC Bank Malaysia Berhad

2.3 BASIS OF ARRIVING AT THE PURCHASE CONSIDERATION The purchase consideration for UOA Pantai was arrived at on a willing-buyer willing-seller basis and is at a discount of 7.6% from the market value of RM93.1 million as valued by Param & Associates (KL) Sdn Bhd, an independent firm of registered valuers, in its valuation dated 6 September 2007. The valuation of RM93.1 million was arrived at using a combination of comparison and investment methods of valuation.

3. INFORMATION ON THE VENDOR Magna Tiara is principally a property investment company and a subsidiary of UOA Holdings Sdn Bhd, and hence a sister company of the Manager. It was incorporated on 29 April 2005 with an authorized and paid up capital of RM100,000-00 and RM100-00 respectively. The current directors of Magna Tiara are Kong Pak Lim, Kong Chong Soon @ Chi Suim, Eugene Lee Chin Jin and Tiong Ah Tong.

4. RATIONALE FOR THE ACQUISITION 4.1 In line with the investment objective of UOA REIT as well as the Managers objective for UOA REIT The investment objective of UOA REIT is to own and invest in real estate and real estate-related assets used, or predominantly used, for commercial purposes, whether directly or indirectly through the ownership of single-purpose companies who wholly own real estate, while the Manager's key objective for UOA REIT is to provide the Unitholders with stable distributions per Unit with the potential for sustainable long term growth of such distributions and the net asset value (NAV) per Unit. With the prime location, current high tenancy rate and potential for growth in rental rates of UOA Pantai, the Manager is of the view that the Acquisition fits the above stated investment objective of UOA REIT as well as the Managers key objective for UOA REIT. 4.2 Opportunity to own the entire building Unlike the current property portfolio of UOA REIT of which it does not own the entire buildings (save for Wisma UOA Bangsar which has been disposed by UOA REIT as per our announcement dated 29 November 2007), the Acquisition will provide UOA REIT the opportunity to own UOA Pantai in its entirety as no parcel in UOA Pantai has been sold.

4.3

Addition to UOA REITs Portfolio of Properties The Acquisition will further enhance UOA REIT's portfolio of properties and tenant mix as well as improve the overall tenancy and yields.

4.4

Accretive and Stable Rental Streams UOA REIT aims to achieve distribution growth and to enhance the value of its property portfolio over time through, inter alia, selectively acquiring additional properties that meet UOA REIT's investment criteria. The Acquisition is expected to be accretive to UOA REIT's distributable income going forward. Besides the accretion and growth potential, the Acquisition also enhances the overall profile of UOA REIT's portfolio in diversification of tenants' concentration and mix.

5. RISK FACTORS UOA Pantai is subject to certain specific risks, which may not be exhaustive, as follows:(a) There may be uninsured or under-insured losses; (b) UOA Pantai or part thereof may be acquired compulsorily; (c) UOA Pantai is subject to the risk of non-renewal of expiring tenancies; (d) The future sale price for UOA Pantai may be less than its current valuation or the purchase price paid by UOA REIT; (e) Losses or liabilities from latent building or equipment defects may adversely affect earnings and cash flow; and (f) UOA Pantai faces competition from neighbouring buildings in attracting tenants. In addition, UOA Pantai is subject to certain inherent risks in the real estate industry to which UOA REIT is already exposed to. Many of these factors may cause fluctuations in occupancy rates, rent schedules or operating expenses, and may potentially have an adverse effect on the value of UOA Pantai and income derived from UOA Pantai.

6. EFFECTS OF THE ACQUISITION 6.1 Unit Capital and Substantial Unitholders Unitholding The Acquisition does not have any impact on UOA REITs unit capital and the unitholding of substantial unitholders. 6.2 Net Asset Value (NAV) NAV will increase by RM6,100,000-00 upon completion of the Acquisition at the timing as set out in item (9), equivalent to approximately 2.48 sen per UOA REITs unit. 6.3 Earnings Magna Tiara is negotiating with few potential tenants and the occupancy of the building is estimated to reach 90% within the next 6 months at an average rental rate of RM4.30 RM4.50 per sq. ft. and generate an estimated net earnings of RM4.5 million per annum after taken into account borrowing costs and other non-operating expenses. Meanwhile, an unrealized gain on fair value adjustment of RM7.1 million together with a transaction cost estimated at approximately RM1.0 million will be recognized in year 2008 upon completion of the Acquisition as set out in item (9). 6.4 Gearing The Acquisition will be satisfied solely by cash and will partly financed by additional borrowings of RM55 million. With the increase in the total borrowings, the gearing of UOA REIT is expected to increase by approximately 0.16 times. Upon completion of the Acquisition at timing as set out in item (9), UOA REITs gearing will increase to approximately 25.4%, which remains below the gearing limit of 50% prescribed by the Securities Commission Guidelines on Real Estate Investment Trusts ("REIT Guidelines"). 6.5 Distribution Distribution Per Unit (DPU) is estimated to increase by approximately 1.74 sen on annualized basis upon the completion of the Acquisition at the timing as set out in item (9).

7. APPROVALS REQUIRED FOR THE ACQUISITION The Acquisition is conditional upon approvals being obtained from the following:-

(i)

the approval of OSK Trustee Berhad (as Trustee for UOA REIT) in accordance with the provisions of the trust deed constituting UOA REIT dated 28 November 2005 (Trust Deed), which was obtained on 5 November 2007; the approval of the shareholders of the Vendor, which was obtained on 15 January 2007; the approval or consent of any relevant third party or any relevant public authority, if required;

(ii)

(iii)

8. INTEREST OF DIRECTORS AND SUBSTANTIAL SHAREHOLDERS OF THE MANAGER Save as disclosed below, the Manager is not aware of any other Directors and substantial shareholders of the Manager and persons connected with them who have any interest, direct or indirect, in the Acquisition:-

8.1

Directors (i) Kong Chong Soon @ Chi Suim is a Director of the Manager, the Vendor and United Overseas Australia Limited (UOA), the ultimate holding company of both the Manager and the Vendor; Tan Sri Dato Alwi Jantan is a Director of the Manager. He is also a Director of UOA, the ultimate holding company of both the Manager and the Vendor; Chan Cecelia is a Director of the Manager. She is also a Director of UOA Holdings Sdn Bhd, the penultimate holding company of both the Manager and the Vendor; and Alan Charles Winduss is a Director of the Manager. He is also a Director of UOA, the ultimate holding company of both the Manager and the Vendor.

(ii)

(iii)

(iv)

Kong Chong Soon @ Chi Suim, Tan Sri Dato Alwi Jantan, Chan Cecelia and Alan Charles Winduss have abstained and shall continue to abstain from voting and deliberating on any Board resolutions relating to the Acquisition.

8.2

Substantial Shareholders (i) Kong Chong Soon @ Chi Suim is also a substantial shareholder of both the Manager and the Vendor via his substantial shareholdings in UOA; Kong Pak Lim is a substantial shareholder of both the Manager and the Vendor via his substantial shareholdings in UOA; UOA is the ultimate holding company of both the Vendor and the Manager; UOA Holdings Sdn Bhd is the penultimate holding company of the Vendor and the Manager; and UOA Corporation Bhd is the immediate holding company of the Manager. It is also the sister-company of the Vendor.

(ii)

(iii)

(iv)

(v)

9. ESTIMATED TIME FRAME FOR COMPLETION Barring any unforeseen circumstances, the Acquisition is expected to be completed by the first quarter of year 2008. 10. DEPARTURE FROM THE REIT GUIDELINES To the best of the knowledge of the Board of the Manager, the Acquisition does not depart from the REIT Guidelines.

11. DIRECTORS STATEMENT The Board (save and except for those as disclosed in Section 8 above who have and will continue to abstain from deliberating on the Acquisition in which they respectively have an interest and/or interests), having considered all aspects of the Acquisition, and after careful deliberation, is of the opinion that the Acquisition is in the best interests of UOA REIT and its Unitholders.

12 DOCUMENTS FOR INSPECTION The following documents are available for inspection at the principal place of business of the Manager at Office Suite 19-21-1, Level 21, UOA Centre, No. 19 Jalan Pinang, 50450 Kuala Lumpur during normal office hours from Monday to Friday (except on public holidays) for a period of three (3) months from the date of this announcement:-

(i) (ii)

The Sale & Purchase Agreement; The Valuation Report.

This announcement is dated 16 January 2008