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RMB 5.5 billion transaction brings SOHO China one of the largest commercial development projects situated in a prime Beijing location
The project, with a planned gross floor area of 485,000 square meters, will be renamed Chaoyangmen SOHO and become SOHO China s second largest property development following Jianwai SOHO
SOHO China s healthy balance sheet and track record of bringing to market highly successful properties were instrumental to the completion of this transaction
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(Hong Kong, May 26, 2008) SOHO China Limited ("SOHO China"; "The Company"; Stock Code: 410), a leading Chinese commercial property developer, today announced that it has entered into agreements for the acquisition of a large-scale development site located in Beijing s Dongcheng District. Renamed Chaoyangmen SOHO, former Kaiheng Centre is one of the largest commercial tracts inside Beijing s main thoroughfare 2nd Ring Road. The site has a frontage of 500 meters along the 2nd Ring Road and is located at the junction of two subway lines, making it highly-accessible with a dense concentration of footfall.
The acquisition, the third for SOHO China since its IPO last October, adds to the Company s portfolio of prime location real estate in central Beijing. SOHO China will provide its established expertise in prime property development and assume planning for the entire site, which consists of total planned gross floor area (GFA) of 485,000 square meters, making it SOHO China s second largest property development following Jianwai SOHO.
53,000 square meters, or 11% of total GFA, has been sold already, purchased by Bank of China and now home to its Beijing branch headquarters. SOHO China will develop the other 432,000 square meters into valuable retail, office, and high-end residential properties with the Company s signature focus on innovative design and execution.
Mr. Pan Shiyi, Chairman of SOHO China, said, "By continuously maintaining our financial discipline, when opportunities like this Chaoyangmen plot arise, we can quickly carry out our growth strategy of procuring hard-to-come-by and ideally-located sites at very favorable terms. Once we have the attractive sites in hand, which we continue to prove we are able to do, we apply our core competencies in design selection, construction oversight, branding, sales and leasing to get the most value out of these properties."
SOHO China will obtain the entire interests in Beijing Kaiheng Real Estate Company Limited ("Kaiheng Company"), which presently owns the legal rights to develop and construct on the site. The total sum of this transaction is RMB 5.5 billion, of which RMB 2.2 billion is equity consideration and RMB 3.3 billion is debt between Kaiheng Company and other third parties.
Ms. Zhang Xin, CEO of SOHO China, remarked, "SOHO China s healthy balance sheet and track record of bringing to market highly successful properties with great investment appeal were instrumental to our completion of this transaction. They served us well both in facilitating the negotiation process and in securing favorable terms for financing the deal. They will continue to put us in an excellent position to capture other buying opportunities we see before us."
Upon completion of the transaction, Chaoyangmen SOHO will become SOHO s ninth commercial project in city center Beijing. It joins Sanlitun SOHO, whose showroom has been hotly received by the market since opening earlier this month, as well as Guanghualu SOHO and Guanghualu SOHO II, as those currently under construction.
Location of Chaoyangmen SOHO
Media Inquiries:
Beijing
Ms. Chunlei Wang, SOHO China
Tel: (010) 5878 8326
wangchunlei@sohochina.com
Mr. Andrew Browne, Brunswick
Tel: (86) 1391 000 5690
abrowne@brunswickgroup.com
Hong Kong
Mr. Joseph Lo Chi Lun
Tel: (852) 3512 5033/9850 5033
jlo@brunswickgroup.com
Ms. Elisa Fong
Tel: (852) 3512 5050/9864 5500
efong@brunswickgroup.com
About SOHO China
Founded in 1995, SOHO China is the industry leader in developing high-profile branded commercial properties in central Beijing. The company collaborates with internationally-recognized architects, translating their innovative designs into iconic real estate which possesses strong appeal to property investors and the local businesses and customer bases which they serve.
On October 8, 2007, SOHO China was successfully listed on the Stock Exchange of Hong Kong as the largest IPO from China s private sector and the largest IPO for commercial real estate developers in Asia. The company was named as one of the "Most Admired Companies" in China by Fortune (China) Magazine in both 2006 and 2007.
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