SOHO China acquires Lu Wan District Land Lot No. 43

Lu Wan District Land Lot No. 43 is located in Shanghai s golden Puxi strip, facing Xintiandi and Huai Hai Road commercial district to the north. With both subway line 10 and subway line 13 (currently under construction) converge here, transportation is especially efficient and convenient. To the east, Ma Dang Road connects Shanghai s most captivating commercial street Huai Hai Middle Road with Shanghai s ever popular Xintiandi, attracting large streams of human traffic, and creating a rich commercial atmosphere for recreation, entertainment, shopping and business.

Lot No. 43 is located within The French Concession ( the historic scenic area where Fu Xing Road and Heng Shang Road intersect ), where commercial culture and historic fa ades blend and collide. The Christian All Saints Church located on the property was established in 1925 and lends a rich French architectural flare.

The Company believes that the acquisition of Lu Wan District Land Lot No. 43 completely adheres to SOHO China s strategy: developing high end commercial real estate in the most affluent parts of Beijing and Shanghai. This year SOHO China completed it full year sales target of RMB 18 billion three months in advance proving the success of this strategy.

Observers readily take note that within one year s time, SOHO China has blossomed in four of Shanghai s districts, increasingly accelerating its expansion into Shanghai. In August 2009, SOHO China officially entered Shanghai with the acquisition of The Exchange SOHO on Nanjing West Road. In June 2010, SOHO China acquired The Bund Lot 204, in August, Linkong Lot 15 in the Hongqiao transportation hub and in October, Lu Wan District Land Lot No.

43. SOHO China s four transactions have swiftly encompassed Nanjing West Road, The Bund, Hongqiao District and Huai Hai Middle Road, Shanghai s most affluent, high traffic commercial areas.

Recently the Shanghai local government released twelve regulatory measures aimed at the residential real estate market limiting each family to the purchase of one new unit of residential property, real estate tax is being introduced on a trial basis, re-establishing Shanghai residential property market regulations.

With regard to this, SOHO China Chairman Pan Shiyi remarks, The return of real estate tax has an incredible impact on the residential property market. Regulatory measures introduced in the city of Shanghai will gradually force the residential property market to normalize. We realize that the regulatory measures recently introduced in Shanghai and other cities are all implementing regulations for the Ten Regulatory Measures released by the State Council directed at the residential property market.

The commercial property market has always been subject to real estate tax. The continuous growth of the Chinese economy is thriving brilliantly. As the cities continue to grow and develop, the economy becomes more vibrant and commercial properties become increasingly impressive. We have observed Shanghai s commercial atmosphere, and have identified it as the prime destination for SOHO China s future growth .