Franshion Properties Successfully Acquired No.15 Land Plot at Guangqu Road, Beijing

Location of the No.15 Land Plot at Guangqu Road, Beijing

(Hong Kong, 30 June, 2009) Franshion Properties (China) Limited ( Franshion Properties or the Company ) (Stock Code: 817) today announced its successful acquisition of No.15 land plot at Guangqu Road for a consideration of RMB4.06 billion. The site is located on the edge of Dajiaoting Bridge, East Fourth Ring, Beijing and is described as a rare golden land by the industry.

Located in the Chaoyang district of Beijing, the land starts from the East Fourth Ring Road in the east to the Dajiaoting Central Road in the west, from Guangqu Road in the south to Baiziwan South Road in the north. With a total area of 155,900 m2, the estimated GFA will be approximately 280,000 m2, including a GFA of 71,000 m2 of integrated and commercial area.

On May 25, 2009, the Beijing Municipal Government approved the east expansion plan of the CBD area, including the expansion of the core CBD area to the east for 3 km2. The newly acquired land, which will be included in the expanded area of the CDB, is near to the East Fourth Ring. It also enjoys an advantageous location supported by convenient transportation and is close to the planned Beijing Subway No. 14 and 7 lines. The land is adjacent to landmark buildings including China World Trade Centre, China Central Place, SOHO New Town, new CCTV building and Beijing TV station.

Being one of the leading premium commercial property developers in the PRC, Franshion Properties develops and owns the Beijing Chemsunny Plaza and Shanghai Jinmao Tower, which are landmark buildings in the core commercial areas in the PRC. The Company has also developed a number of high-end integrated projects including Shanghai Port International Cruise Terminal Project and Shanghai International Shipping Service Center, which are key projects in the strategic plan of developing Shanghai into an international shipping centre.

In June 2009, Shanghai Port International Cruise Terminal Project was named TOP 20 PRC City Complex by Circulation Industry Promotion Center of the Ministry of Commerce, while Franshion Properties was named one of the top 10 PRC city complex operators. The Company now plans to develop the land plot of No. 15 Guangqu Road into a high-end integrated property project including high-end residential and commercial properties.

This acquisition is an important initiative for Franshion to expand its investment property business, and the land plot has become the landbank for Franshion s strategic development in Beijing. Franshion Properties holds a positive view on the long term, given the healthy trend of the economic development of the area where the land plot locates, as well as the development potential of the commercial properties following the execution of the east expansion plan of the CBD. The acquisition also complements to the core development strategy of Franshion to focusing on the development and holding of high-end commercial properties located in first-tier cities and prime areas .