(6 May 2011, Beijing) Today SOHO China Limited (Stock Code: 410, hereinafter

referred to as "SOHO China" or "The Company") announced the signing of an agreement with Shanghai Trio Property Development Company Limited to acquire Shanghai New World Changning Commerical Center Buildings office buildings A and B including underground space for RMB 3.2 billion. Upon completion of the acquisition the development will be renamed "SOHO Zhongshan Plaza".  

 

SOHO Zhongshan Plaza occupies and area of 16,176 square meters, the land is for commercial and office use and is comprised of two towers. The GFA is 142,184 square meters of which 100,199 square meters are for office use and 12, 664 square meters are for commercial use.

 

The acquisition of SOHO Zhongshan Plaza project represents the continuation of SOHO China´s consistent strategy to focus on commercial property in Beijing and Shanghai’s prime locations situated along major transportation networks. Situated at Zhongshan West Road, in Shanghai’s Changning District, SOHO Zhongshan Plaza is set in the prime core of the Hongqiao business district and is surrounded by a vibrant commercial and office atmosphere. It is only 2 kilometers away from Zhongshan Park and the Xujiahui Business district and only 8 kilometers from the Hongqiao transportation hub. SOHO Zhongshan Plaza is easily accessible through an extremely convenient transportation network that is close to Songyuan Road Station on Subway Line 10 and Hongqiao Road Station on Subway Lines 3, 4 and 10, and is in close proximity to the Zhongshan West Road / Inner Ring highway.

 

Located in Xujiahui, one Shanghai’s best known commercial areas, Zhongshan Square is home to shopping, office, business, leisure, accommodation, and catering. Featuring a range of "high, medium, and low characteristics", Xujiahui boasts a unique charm that attracts a large number of visitors. Grand Gateway is a large scale shopping mall representing a selection of world famous brand names, Pacific Department Store is a shopping center specializing in popular fashion brands, and Huilian Commercial Tower and other lower-cost commercial facilities target middle-aged and older consumers in addition to over six hundred mid-range department stores and retail outlets. Xujiahui is also a commercial center for IT. Buy Now and Pacific Computer City among others are large retail outlets for computer products. The area is also home to Kodak Studios, Yonghua Film City and Metro City as well as Hengshan Road Bar Street and other recreational and entertainment destinations.

 

This is SOHO China´s seventh acquisition in Shanghai within two years time, and is the Company’s highest priced acquisition in Shanghai yet. This acquisition is third in a series of acquisitions made since April 1. Following Caojiadu Land and Hailun Lu Land, the acquisition represents another step in SOHO China´s establishment in Shanghai´s most prosperous and conveniently accessible locations. In less than two years since the Company’s entrance into the Shanghai market with the August 18 2009 acquisition of The Exchange – SOHO, SOHO China has established itself in seven of the city´s prime commercial locations: Nanjing West Road, The Bund, Hongqiao Transportation Hub, Huai Hai Middle Road, Changshou Road, Sichuan North Road and Xujiahui, with an accumulated investment total of RMB 14.7 billion. Within only one month´s time SOHO China has completed three acquisitions in Shanghai proving the Company´s utmost confidence in the city´s business environment and commercial real estate and highlighting the company´s swift expansion in the Shanghai market, and another step closer to this year´s RMB 15 billion acquisition target.  

 

Under the pressures of the vigorous macro-controls and government endorsed housing, China´s residential property market has entered an unprecedented low. In stark contrast, in cities, and especially in large cities, the commercial real estate market is still promising. Pan Shiyi, chairman of SOHO China, said: "Commercial real estate has great potential. Looking at the rate of rent returns alone, where apartments and homes earn 3%, commercial real estate earns at least 6%, effectively doubling profits. There is no more important indicator in the market." With more than RMB 20 billion cash in hand, SOHO China sees 2011 as a year to seize acquisition opportunities in the Beijing and Shanghai real estate markets.

 

As a commercial real estate developer that firmly believes in the spirit of new innovation, SOHO China continuously strives to promote innovation in its every architectural design, sales model, and philosophy. In recent years, constant upgrades in technology have given SOHO China increasing possibilities in planning, design, construction, cost control, sales and other areas, and have allowed the Company test the waters of real estate e-commerce. SOHO China hopes that the wisdom and courage of this innovation will optimize the Company’s integration into Shanghai’s flourishing and limitless commercial real estate market.