Location map of the newly acquired Gubei 5-2 Land
(2013, April 25, Shanghai) Today, SOHO China Ltd. (Stock Code: 410HK, hereinafter referred to as “SOHO China” or “The Company”) announces the successful bid for the Gubei 5-2 land, located at the core area of Shanghai’s Hongqiao development zone for an acquisition price of RMB 3.19 billon.
The land parcel’s full name is “Changning District Hongqiao Road No. 261 Unit A0-02 Land (Gubei 5-2)”. Located in the Hongqiao Foreign Trade Center area (also known as the Hongqiao CBD), the land is situated with Yili Road to the north, Hongbaoshi Road to the south, Manao Road to the west and the Hongqiao Road expressway to the north. The project land is for office and retail use, with a total GFA of 16, 558.3 square meters, overall construction area of approximately 150, 000 square meters, and above ground construction area of 105, 476 square meters.
 
This acquisition fully adheres to SOHO China’s longstanding development strategy. The north end of “Gubei 5-2” occupies the 130,000 square meter New Hongqiao Center Garden, and the land neighbors the high end Japanese department store Gubei Takashimaya and Gubei Fortune Plaza, among other grade A office buildings. The location easily accessible underground by Subway Line 10 and under-constructed Subway Line 15’s Yili Station. With a vibrant surrounding commercial atmosphere, the area is a hub for Changning’s office, commercial and high end apartment buildings.
“We have consistently aimed to make the timely purchase of prime location projects with convenient public transportation such as metro lines, because this fulfills the demand for office space. The most basic condition for office space is the high efficiency provided by prime location and convenient transportation”, says SOHO China Chairman Pan Shiyi.

New Hongqiao Center Garden (North end of acquired Land)
This acquisition marks the Company’s twelfth acquisition in Shanghai since entering the Shanghai market in August 2009, and is the Company’s fourth project in Changning District. Over the last three years, SOHO China has extended its footprint to Shanghai’s prime commercial districts including Nanjing West Road, the Bund, Hongqiao transportation hub, Hongqiao CBD, Sichuan north road, Xujiahui and Pudong, with a total acquisition value of about RMB 28.7 billion, upon completion of pipeline projects this will represent a total investment amount reaching RMB 5 billion.
Today, after four developers participated in the land auction for “Gubei 5-2” hosted by the Shanghai City Land Exchange, the final land price fell to RMB 31,000 per square meter.
“We believe, this is a reasonable market price. And with about 150,000 square meters of GFA, and especially for office developers like us, this is an ideal scale”, Pan Shiyi says.
Despite the challenging complexities of the Chinese property market, SOHO China continues to actively acquire land, proving the Company’s utmost confidence in the future development of China’s leading cities, Beijing and Shanghai. “We hold Shanghai in very high regard. It is China’s most mature market, with a vibrant commercial atmosphere, and commercial operations standards.” Pan Shiyi remarks. “Shanghai’s office area is especially concentrated. Office space is dense and high producing heightened commercial efficiency. As the largest prime office developer in Beijing and Shanghai, we hope to continue developing here.”

Hongqiao Foreign Trade Area (Northwest of Project Land)
 
About SOHO China
SOHO China was founded in 1995 by SOHO China Chairman Pan Shiyi and CEO Zhang Xin. The company develops prime office properties in the most affluent districts of Beijing and Shanghai, seizing opportunities to develop unique and innovatively design landmark buildings with architecture that appeals to modern times. The Company strives to make every development an architectural trophy for the city in which it is built.
 
SOHO China has 18 landmark projects in Beijing that continuously infuse the city with a modern aesthetic. Since the Company’s successful entry into the Shanghai market in 2009, the SOHO China has extended its footprint by way of active acquisitions. At present the Company has 12 projects in Shanghai, both completed and under construction.
SOHO China holds over 1.7 million square meters of prime office properties in the most vibrant and valuable districts of Beijing and Shanghai. The Company is the largest landlord on Shanghai’s Bund and a major landlord on Beijing’s historic Qianmen Avenue. In August 2012, seizing the market opportunity to increase the value of the Company, SOHO China “transformed” its business model from “build-to-sell” to “build-to-hold”.
 
Innovation is the spirit of SOHO China. The company’s brand is highly recognized as a creative force for China. The Company works together with internationally acclaimed architects to develop iconic landmark properties that cater to local demand, while creating a new culture of innovation.
 
On 8 October 2007, SOHO China was successfully listed on the Stock Exchange of Hong Kong as 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 from 2006 to 2010.
 
Further inquiries, please contact:
SOHO China Department of Public Relations
 
Yang Linran
8610 5878 8598     yanglinran@sohochina.com