ANNOUNCEMENTS

The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

Letter of Offer for lease of a property:

Parties:
 
 

Landlord:	First Capital Land Pte Ltd, a wholly owned subsidiary of First Capital Corporation Ltd ("FCC"). The principal business of FCC and its subsidiaries is property development and investment.
Tenant:	HL Bank, a branch of Hong Leong Bank Berhad, a listed company in Malaysia engaged in banking business.

Property:

Units #B1-02, #01-02 and #02-02 at Tung Centre, 20 Collyer Quay, Singapore (the "Property"). The Property, comprising a basement, banking hall and mezzanine areas, has a total lettable area of 16,577 square feet. It is the intention of the Tenant to use the property for its banking operation in Singapore.

Lease term:

The lease will be for a term of three years commencing 1st June, 1998 at a rental of S$107,727.70 (approximately HK$515,000) per month inclusive of service charge and goods and service tax. The rental was based on the valuation of the prevailing open market rent of the property by Edmund NS Tie & Company Pte Ltd, an independent property consultant in Singapore. The Directors of Guoco Group Limited are of the view that the lease terms are fair and reasonable and based on normal commercial terms.

Pursuant to the acceptance of the offer by HL Bank, the parties would be entering into a tenancy agreement on terms substantially similar to the current lease or otherwise on normal commercial terms on an arms length basis and includes an option to renew for another three years at prevailing market rental.

Connected Transaction:

FCC is a listed company in Singapore of which Guoco Group Limited ("Guoco") holds 57% of its share capital. Guoco holds approximately 20.8% in Hong Leong Credit Berhad ("HLC") which holds approximately 71% in HLBB. HLC is a non wholly-owned subsidiary of Hong Leong Company (Malaysia) Berhad ("HLCM") which is a substantial shareholder of Guoco. Mr. Quek Leng Chan is a substantial shareholder of HLCM and a director of Guoco, FCC and HLBB. The lease of a property by FCC to HLB constitutes a connected transaction pursuant to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. The gross rental represents less than 3% of the net tangible assets of Guoco. Details of the transaction will be included in the next published annual report and accounts of Guoco.