Oriental Landmark

The Company holds a 55% interest in a commercial and residential development project known as Oriental Landmark, previously referred to as Dongfang Wende Plaza. Oriental Landmark is located in central downtown Guangzhou, just a few minutes’ walk from Beijing Road, which is a widely popular pedestrianized shopping street.

This development comprises a four story shopping arcade, with four basement floors underneath (one of which forms part of the shopping arcade and the other three a car park), and three residential towers of 35 floors each above. The development also includes a fourth residential tower comprised of 29 floors and a commercial tower of 26 floors. The aggregate floor area of this development is approximately 169,204 square metres.

Presales in the first block commenced in December 2011, and up to 21 June 2013, 191 of the 192 units had been sold at an average price of approximately RMB 31,000 per square metre. Presales in the second block commenced in April 2012 and, up to 21 June 2013, 162 of the 176 available had been sold at an average price of RMB 34,000 per square metre. Presales in the third block commenced in July 2012 and, by 21 June 2013, 151 of the 155 units had been sold at an average price of RMB 38,000 per square metre. Presales in the fourth block commenced in October 2012 and, as at 26 June 2013, 100 of the 126 units offered had been sold at an average price of RMB 43,000 per square metre. Presale volumes and prices of residential units at Oriental Landmark have continued to exceed the Company’s original expectations and it believes that, on completion in fiscal 2013-14, the completed sales of these units will generate a very good return. In addition, following completion, Oriental Landmark will provide the Company with recurrent and growing rental income from the 33,292 square metres of commercial area in the shopping arcade and the 500 car park spaces located in one of the busiest areas in Guangzhou.