Tiananmen South (Qianmen)

On 15 May 2009, the Group entered into a framework agreement and a supplemental agreement to purchase 54,691 square meters of retail properties at Tiananmen South (Qianmen), through Beijing Danshi Investment Management Co., Ltd. (“Beijing Danshi”) (a company controlled by the Company’s chairman, Mr. Pan Shiyi). The total consideration of this purchase was RMB1,768 million, at RMB32,328 per square meter. Of the 54,691 square meters, approximately 22,763 square meters are located on Qianmen Avenue, which have been fully built, and approximately 31,928 square meters are located on the east side of Qianmen Avenue, largely yet to be built.

The two agreements were intended to restructure the original agreements entered into in early 2007 by the same parties and disclosed in the prospectus of the Company, under which the Group has the right to acquire from Beijing Danshi its 100% economic interest in the Tiananmen South (Qianmen) project. However, despite two years of intensive effort, the requisite government approvals for the transfer have remained outstanding. All parties therefore have agreed to a revised agreement under which the Group will acquire through Beijing Danshi the right to acquire direct ownership of the above-mentioned properties in the most desirable areas of the project. In addition, the Group will have the right of first refusal for the development of other parts of the project in the future. Proposed restructuring of Tiananmen South (Qianmen) project was approved by independent shareholders at the extraordinary general meeting of the Company held on 16 June 2009.

The Group keeps these completed retail properties as investment properties. As at 31 December 2009, nearly 90% of the fully built area held by the Group was leased out.

The Exchange – SOHO

On 18 August 2009, the Group acquired The Exchange at a total consideration of USD equivalent to RMB2,450 million plus the amount of working capital of the project company prior to the transaction closing date. The Group renamed the property as The Exchange – SOHO. The Exchange – SOHO is located at No.1486 Nanjing Road West, Shanghai, in the heart of the Nanjing Road West Commercial Business District. It is in close proximity to a concentration of five-star hotels, high-end shopping centres and two metro stations (Line 10 and planned Line 4), as well as Shanghai’s main east-west thoroughfare – Yan’an Elevated Highway. The 52- floor project with a height of 217 meters is among Shanghai’s tallest skyscrapers. It is comprised of a total above-ground GFA of 71,671 square meters of commercial space and a total below-ground GFA of 8,838 square meters for parking and storage.

This acquisition marks the Group’s much anticipated entry into the Shanghai commercial property market. The Group is actively looking to acquire completed or near-completion commercial projects that can generate return within a relatively short timeframe.

Galaxy SOHO

Galaxy SOHO (also known as Chaoyangmen SOHO phase III) is designed by Zaha Hadid Architects and will be developed into a high quality and innovative commercial property. With total GFA of approximately 334,000 square meters, Galaxy SOHO will be the Group’s iconic development within the 2nd Ring Road of Beijing.

Wang Jing Plot B29

On 3 September 2009, the Group made a successful bid of RMB4 billion for the land use right in respect of plot B29 situated at Wang Jing, Chaoyang District, Beijing (“Plot B29”) through a public bidding process.

Plot B29 is to be developed into large-scale retail and office properties with a total GFA of approximately 500,000 square meters. Wang Jing area is Beijing’s most mature high-end residential area of the largest scale, which is noticeably lacking in large-scale office and commercial facilities. The development of Plot B29 will complete and add balance to the overall urban master plan for Wang Jing. There is excellent accessibility to Plot B29, with two subway lines and one light rail nearby and easy access to the airport expressway. This development, zoned to stand 200 meters high, will be the first landmark and point of access to central Beijing from the airport expressway. Wang Jing is also home to the China headquarters of many multinational companies, including Daimler, Siemens, Microsoft, and Caterpillar whose headquarters are situated nearby.

Sanlitun SOHO

Sanlitun SOHO is located close to the second embassy district and the Workers’ Stadium in Beijing. The site is in the popular Sanlitun entertainment district. With a total planned GFA of approximately 465,371 square meters, Sanlitun SOHO is one of the largest commercial and residential complexes available for sale in central Beijing. It is developed into five office towers and four residential towers on top of shopping malls, which are linked by an outdoor plaza. Pre-sale of Sanlitun SOHO commenced on 12 July 2008. As at 31 December 2009, the contract sales area for Sanlitun SOHO was 328,718 square meters (not including car parks), with an average price of RMB48,024 per square meter. Total contract sales amount was RMB15,886 million.

During 2009, Sanlitun SOHO Phase I with total GFA of approximately 240,000 square meters was completed and delivered. Sanlitun SOHO Phase II is under construction and will be completed and delivered in 2010.

Guanghualu SOHO II

Guanghualu SOHO II is located in the heart of the Beijing Central Business District (“CBD”) with a total planned GFA of approximately 167,000 square meters. It is the Group’s sixth project in Beijing CBD and is now under construction.