According to the Company s information, the Property is a formed vacant reclaimed land and currently covered with vegetation.

Transcription

1 The Directors Grand Power Express International Limited 13th Floor Yoo Hoo Tower Nos Kwai Fung Crescent Kwai Chung New Territories Hong Kong Savills Valuation and Professional Services Limited 23/F Two Exchange Square Central, Hong Kong T: (852) F: (852) EA LICENCE: C savills.com 12 April 2011 Our Ref.: CV/2011/VPS/0075/CC/AL/MW/JWO/ck Dear Sirs, RE: VALUATION OF YANGSHAN INTERNATIONAL CONTAINER TRANSIT LOGISTICS PARK, THE PEOPLE S REPUBLIC OF CHINA (THE PROPERTY ) We refer to your instructions for us to assess the current market value of the Property located in the People s Republic of China (the PRC ) in a completed project status for internal reference purposes and will form part of the bank financing exercise to be performed by the Company. As instructed, we have not carried out an on-site inspection of the Property but we have made relevant enquiries and investigations as we consider necessary for the purpose of providing you with our opinion of value. Our valuation report is attached as follows: EXECUTIVE SUMMARY Location The Property is located in Xiao Yangshan of Yangshan Deep-Water Port, Yangshan, Shengsi County, Zhejiang Province, PRC Over 200 offices and associates throughout the Americas, Europe, Asia Pacific, Africa and the Middle East. Savills Valuation and Professional Services Limited

2 Description The Property comprises an oddly shaped site and is planned to be developed into a logistics park, namely Yangshan International Container Transit Logistics Park. It comprises a parcel of reclaimed land with a total site of approximately 867,100 sq.m. (9,333,474 sq.ft.). Breakdown site areas and various land uses of the Property are approximately as follows: Land Uses Approximate Site Area (sq.m.) (sq.ft.) International container yard 433,550 4,666,732 Domestic container yard 173,420 1,866,693 Logistics zone 86, ,346 Process zone 69, ,677 Office zone 17, ,669 Parking Lot 8,671 93,345 Road 34, ,339 Green land 43, ,673 Total 867,100 9,333,474 As per supplied information, the Property will be developed into a logistics park, namely Yangshan International Container Transit Logistics Park. Upon completion, it will have a planned total gross floor area ( GFA ) of approximately 346,840 sq.m. (3,733,385 sq.ft.) plus 231 car parking spaces. Breakdown GFA and usages are as follows: Land Uses Approximate GFA (sq.m.) (sq.ft.) Office 41, ,008 Logistics Warehouse 138,736 1,493,354 Process Warehouse 166,483 1,792,023 Total 346,840 3,733,385 Our Ref.: CV/2011/VPS/0075/CC/AL/MW/JWO/ck Page ii

3 Tenure Based on the current government policy, land use rights in the PRC are granted for 50 years in general for Industrial use. The Property has not been awarded with State-owned Land Use Rights Certificate as at the date of this report. Our valuation is based on the assumption and information provided by the Company that the land use rights terms of the Property is 50 years for industrial/logistics use. Occupancy Status According to the Company s information, the Property is a formed vacant reclaimed land and currently covered with vegetation. Current Site Value in a Clear and Formed State RMB1,400,000,000 (RENMINBI ONE BILLION AND FOUR HUNDRED MILLION ONLY) Current Market Value in a Project Completed Status RMB2,800,000,000 (RENMINBI TWO BILLION AND EIGHT HUNDRED MILLION ONLY) The above executive summary is to be used in conjunction with the valuation report to which it forms part and is subject to the assumptions, caveats and bases of valuation stated herein and should not be read in isolation. Our Ref.: CV/2011/VPS/0075/CC/AL/MW/JWO/ck Page iii

4 Content 1. INSTRUCTIONS DATE OF VALUATION YANGSHAN DEEP-WATER PORT OVERVIEW MARKET COMPARABLES PROPERTY LOCATION PROPERTY DESCRIPTION CONDITION ENVIRONMENT MATTERS TOWN PLANNING TENURE AND ENCUMBRANCES VALUATION ISSUES VALUATION ASSUMPTIONS CURRENT MARKET VALUE REMARKS APPENDICES APPENDIX I LOCATION PLAN APPENDIX II DOCUMENTS APPENDIX III SAVILLS STANDARD AND LIMITING CONDITIONS Our Ref.: CV/2011/VPS/0075/CC/AL/MW/JWO/ck

5 1. INSTRUCTIONS In accordance with your instructions dated 10 January 2011, we have prepared a valuation of the Property for internal reference and will form part of the bank financing exercise to be performed by the Company. The Property has been valued on the basis of market value in accordance with the International Valuation Standards 2005 (Seventh Edition) prepared by The International Valuation Standards Committee and The HKIS Valuation Standards on Properties (First Edition 2005) prepared by the Hong Kong Institute of Surveyors and carried out by us as suitably qualified independent valuers. Our valuation has been carried out in accordance with and subject to Terms of Valuation and Limiting Conditions contained in Appendix III to this report. Our valuation of the Property is our opinion of its market value which we would define as intended to mean the estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm s length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion. The market value is the best price reasonably obtainable in the market by the seller and the most advantageous price reasonably obtainable in the market by the buyer. This estimate specifically excludes an estimated price inflated or deflated by special terms or circumstances such as atypical financing, sale and leaseback arrangements, special considerations or concessions granted by anyone associated with the sale, or any element of special value. The market value of a property is also estimated without regard to costs of sale and purchase, and without offset for any associated taxes. We confirm that we are not aware of any conflict of interest that would prevent us from providing a valuation of the Property. Having considered your instructions and inspected the Property, and having made general enquiries in relation thereto, we have pleasure in reporting as follows: 2. DATE OF VALUATION We confirmed that we have not undertaken an on-site inspection of the Property in accordance with your instructions. We are instructed to prepare a property valuation report with the current market value of the Property in a completed project status. Our Ref.: CV/2011/VPS/0075/CC/AL/MW/JWO/ck Page 1

6 3. YANGSHAN DEEP-WATER PORT OVERVIEW 3.1. YANGSHAN DEEP-WATER PORT Source: Savills Valuation Yangshan Deep-Water Port is located south of Shanghai and is connected to the mainland, namely Lingang Logistics Park, by Donghai Bridge, the second longest cross-sea bridge in the world at 32.5 kilometres ( km. ). The Lingang Logistics Park stands on a piece of land having 21.5 square kilometres. It is located in Lingang Industrial Zone which is about 27 km from the Shanghai Pudong International Airport. The park is divided into three areas: free trade port, international logistics park and warehousing area. The park is responsible for developing heavy equipment manufacturing, civil aviation equipment manufacturing, modern logistics, marine technology, research and development service and export processing. The port is geographically located at the entrance of the Yangtze River. Shanghai s throughput has increased by 21 percent Y-o-Y to 2.37 million TEUs in April meaning Shanghai became the busiest port in the world in Our Ref.: CV/2011/VPS/0075/CC/AL/MW/JWO/ck Page 2

7 China container throughput (TEU 000) 29,069 30,000 25,000 25,002 21,040 23,532 22,510 20,000 18,250 15,000 10,000 10,503 13,144 11,200 12, ,000 0 Shanghai Hong Kong Shenzhen Nigbo Guangzhou Source: Grand Power Logistics Development Limited The port officially started business on 10 December 2005 when the first phase opened. The first phase, known as the Shanghai Shengdong International Container Wharf, is made up of five berths, each at 15.5 metres ( m. ) deep. It has a coastline of around 1,600 m. Phase 1 added an astounding 2.2 million TEUs of annual container handling capacity to the city s port system. Yangshan s Phase 2 opened at the end of It is a total of 1,400 m. in length and added another four berths to the existing five from Phase 1. Phase 3, 1,350 m. in length, opened in 2007, followed by Phase 3B, 5,600 m. in length, in 2008, bringing the port s total capacity to 11 million TEUs from an additional seven berths. By the end of 2008, a total of 16 berths were completed and put into use. Construction on the remaining phase of the port was stopped in 2008 due to the global financial crisis of 2008, but expansion was resumed again in late Phase 4 is scheduled to be completed around 2012, adding another 10 to 12 berths to the port and increasing the handing capacity by 10 million TEUs bring the total to approximately 30 berths. The port has a total of 16 quay cranes currently, and the plan is to bump the number up to around 30 quay cranes in Our Ref.: CV/2011/VPS/0075/CC/AL/MW/JWO/ck Page 3

8 Contribution of Shanghai Port 60.0% 50.0% 59.6% 54.0% 56.0% 52.0% 40.0% 30.0% 20.0% 23.0% 29.4% 31.0% 35.0% Yang Shan Wai Gao Qiao 10.0% 0.0% Source: Grand Power Logistics Development Limited Yangshan contributes about 35 percent of the total volume in Shanghai by the end of A total of 40 percent of the volume originates from sea-to-sea transit shipments, which is higher than the average level for Shanghai ports. Yangshan s contribution to Shanghai Port is growing greater than Wai Gao Qiao. Yangshan s total throughput amounted to 960,800 standard containers, an increase of nearly 37 percent Y-o-Y in August Approximately 800 ships entered and exited the port during this time, an increase of around 11 percent M-o-M. An increase of around 18 percent from July 2010 of human traffic in the port, bring the total to approximately 18,000 people. Our Ref.: CV/2011/VPS/0075/CC/AL/MW/JWO/ck Page 4

9 3.2. PROJECT FOCUS: YANGSHAN INTERNATIONAL CONTAINER TRANSIT LOGISTICS PARK Source: Savills Valuation INTRODUCTION OF THE PROPERTY The Property is located in the Yangshan Deep-Water Port. The Property will be divided into four operating zones to meet the growing demands of consumers for rental properties. The four zones are classified as container yards, logistics zone, processing zone and office building. Our Ref.: CV/2011/VPS/0075/CC/AL/MW/JWO/ck Page 5

10 4. MARKET COMPARABLES 4.1. RENTAL COMPARABLES LAND RENTAL COMPARABLES City Container Yard Container Yard (RMB/TEU/Day) (RMB/SQ.M./Day) Port Ningbo (Domestic Container) Port Shanghai (Domestic Container) Port Tianjin (Domestic Container) (Domestic) Port Guangzhou 300 (International) 1.5 Port Qingdao (Domestic Container) Port Dalian (Domestic Container) Port Shenzhen 4 (Domestic) 150 (International) 1.5 Port Xiamen (Domestic Container) Port Hong Kong (International Container) 693 N/A Source: Savills Valuation OFFICE & WAREHOUSE RENTAL COMPARABLES PORT RENTAL COMPARABLES Logistics Zone Process Zone Factory City Warehouse /Duty Free Warehouse Office Building (RMB/SQ.M./Day) (RMB/SQ.M./Day) (RMB/SQ.M./Day) Port Ningbo (Domestic Container) Port Shanghai (Domestic Container) Port Tianjin (Domestic Container) Port Guangzhou Port Qingdao (Domestic Container) Port Dalian (Domestic Container) Port Shenzhen 3 (RMB/M3/Day) Port Xiamen (Domestic Container) Our Ref.: CV/2011/VPS/0075/CC/AL/MW/JWO/ck Page 6

11 Logistics Zone Process Zone Factory City Warehouse /Duty Free Warehouse Office Building (RMB/SQ.M./Day) (RMB/SQ.M./Day) (RMB/SQ.M./Day) Port Hong Kong (International Container) Source: Savills Valuation (RMB/M3/ Day) LOGISTICS PARK RENTAL COMPARABLES Jingqiao Property Name Zhangjiang Processing Waigaoqiao Caohejing High-tech Park Export Zone Industrial Zone Business Park Location Jinke Road 202 Jinyue Road Jilong Road Hongmei Road Retail Gross Floor Area (sq.m.) 30,015 48,061 50,000 22,027 Landlord Shanghai Pudong Software Park Co., Ltd. Shanghai Eternal Asia Supply Chain, Ltd. Shanghai Telecom Co., Ltd. Shanghai Caohejing Park Development Co., Ltd. Completion Year Average Rental Price (RMB/sq.m./day) Office: Office: 1.8 Warehouse: 0.9 Office: 2.4 Office: 2.5 Handover Condition Bare Shell Bare Shell Bare Shell Bare Shell Property Management Fee (RMB/sq.m./month) N/A N/A 27 N/A Occupancy Rate 85% 75% 65-70% 75% Source: Savills Valuation Our Ref.: CV/2011/VPS/0075/CC/AL/MW/JWO/ck Page 7

12 4.2. TRANSACTION COMPARABLES LAND TRABSACTION COMPARABLES Comparables Location Transaction Date Transaction Price* (RMB/Mu) Plot , Waigaoqiao Pudong February ,050,642 Plot 6-1, Caolu Industry Park Pudong October ,271,007 Plot , Waigaoqiao Pudong February ,050,002 Plot 3, Phase 2, Waigaoqiao Pudong January ,083,347 Source: Savills Valuation BUSINESS PARK TRABSACTION COMPARABLES Jinqiao Kangqiao Property Name Zhoupu Processing Industrial Waigaoqiao Industrial Zone Export Zone Zone Industrial Zone Retail Gross Floor Area (sq.m.) 14,000 6,900 26,000 1,650 No. of Floors L3-6 L1 L1 L2 Ceiling Height (metres) Sale Price (RMB/sq.m.) 6,900 8,500 5,700 4,000 Handover Condition Bare Shell Bare Shell Bare Shell Bare Shell Property Management Fee (RMB/sq.m./month) N/A N/A N/A N/A Occupancy Rate N/A N/A N/A N/A Source: Savills Valuation 5. PROPERTY LOCATION 5.1. LOCATION The Property is located in Yangshan Deep-Water Port, which is approximately 80 km distance from Pudong International Airport in Shanghai. Adjacent to the port is the Lingang Logistics Park located at the other end of the Donghai Bridge. Our Ref.: CV/2011/VPS/0075/CC/AL/MW/JWO/ck Page 8

13 Source: Savills Valuation Location plan of the Property is in Appendix I for information ACCESSIBILITY The Property is connected to Shanghai mainland by Donghai Bridge, the second longest cross-sea bridge in the world with a length of about 32.5 km. The entrance to the port is located on the northwest side of the port in Phase 1.. Our Ref.: CV/2011/VPS/0075/CC/AL/MW/JWO/ck Page 9

14 6. PROPERTY DESCRIPTION Source: Savills Valuation 6.1. DEVELOPMENT The Property comprises of a piece of oddly shaped land that will be divided into a total of four zones. The four zones will be classified as container yard, logistics zone, processing zone and office building. The total planned site area of the proposal development is approximately 867,100 sq.m. Breakdown site areas with different uses are listed below: Uses Site Area Percentage (sq.m.) International Container Yard 433,550 50% Domestic Container Yard 173,420 20% Logistics Zone 86,710 10% Processing Zone 69,368 8% Office Building 17,342 2% Parking Lot 8,671 1% Our Ref.: CV/2011/VPS/0075/CC/AL/MW/JWO/ck Page 10

15 Uses Site Area Percentage (sq.m.) Road 34,684 4% Green Land 43,355 5% Total Site Area 867, % Source: Savills Valuation Office Parking Lot, Building, 8, , Process Zone, 69, Logistics Zone, 86, Domestic Container Yard, 173, Road, 34, Green land, 43, International Container Yard, 433, International Container Yard Domestic Container Yard Logistics Zone Process Zone Office Building Parking Lot Road Green land Source: Savills Valuation As per supplied information, the Property will be developed into a logistics park, namely Yangshan International Container Transit Logistics Park. Upon completion, it will have a planned total gross floor area ( GFA ) of approximately 346,840 sq.m. (3,733,385 sq.ft.) plus 231 car parking spaces. Breakdown GFA and usages are as follows: Land Uses Approximate GFA (sq.m.) (sq.ft.) Office 41, ,008 Logistics Warehouse 138,736 1,493,354 Process Warehouse 166,483 1,792,023 Total 346,840 3,733,385 Our Ref.: CV/2011/VPS/0075/CC/AL/MW/JWO/ck Page 11

16 7. CONDITION As per supplied information, the Property comprises an oddly shaped site and planned to be developed into a logistics park, namely Yangshan International Container Transit Logistics Park. The projected International Container Transit Logistics Park has not yet been constructed. We are unable to report and comment on the building conditions and services. According to the Company s information, the subject property is a formed vacant reclaimed land currently covered with vegetation. 8. ENVIRONMENT MATTERS We are not instructed to undertake or commission an environmental assessment to establish whether contamination exists or may exist, nor are we aware of any such assessment having been prepared by a specialist adviser in respect of the Property and its environments. For the purpose of this valuation, we have assumed that no contamination exists in relation to the Property sufficient to affect value. However, we would stress that should this assumption prove to be incorrect the value reported herein might be reduced. In accordance with your instructions we have not undertaken any detailed site investigations. We would recommend that your legal advisers obtain formal confirmation from the current owner and occupiers that no notices have been served on them by the Local Authority. 9. TOWN PLANNING As the subject development is still in its early planning stage, town planning or requirements for the subject have not yet been considered at the moment. Our valuation for the subject is made on assumptions that all required documents such as Contract for Grant of State-owned Land Use Rights, Construction Land Use Permit, Construction Work Permit, Commencement of Construction Works Permit, State-owned Land Use Right Certificate and Building Ownership Certificate will be granted by the relevant government bureaus at no extra charge or onerous conditions. All land premiums and other costs of ancillary utility services have been settled in full and all mandatory construction and building tests are passed. Our Ref.: CV/2011/VPS/0075/CC/AL/MW/JWO/ck Page 12

17 Hence the development proposal given to us for the purpose of our valuation is precise and reliable. Based on this design proposal given to us, we have valued the Property assuming it is designated for International Container Transit Logistics Park use. 10. TENURE AND ENCUMBRANCES In accordance with the supplied information from the Company, the Property is currently subject to the following documents: Pursuant to the 洋 山 国 际 中 转 物 流 园 区 项 目 投 资 意 向 备 忘 录 between 嵊 泗 县 人 民 政 府 ( Party A ) and Grand Power Logistics Development Limited ( Grand Power Logistics ) dated 12 January 2010, Party A agreed to grant a parcel of reclaimed land of approximately 867,100 sq.m. to Grand Power Logistics. Pursuant to the 嵊 泗 县 发 展 和 改 革 局 文 件 No. Sheng Fa Gai dated 3 December 2010, 嵊 泗 县 发 展 和 改 革 局 consented the development of the project and subject to the following salient requirements: Location: Reclaimed land at Xiao Yangshan Site area: 80 mu ( 亩 ) Site usages allocation: Container zone 25,000 sq.m.; storage 45,000 sq.m. Office 15,000 sq.m. Daily, ancillary facilities and open space 10,000 sq.m. Use of the site: Container and transport use 集 装 箱 多 式 联 运 业 务 Validity: 2 years Pursuant to the 嵊 泗 县 对 外 贸 易 经 济 合 作 局 文 件 No. Sheng Wai Jin Mao dated 4 January 2011, 嵊 泗 县 对 外 经 贸 局 agreed and consented the following salient terms: Ownership: Grand Power Logistics is a company of sole proprietorship Registered capital: US$15,000,000 Business nature: Transportation services including storages Operation period: 50 years As advised by the Company, the application for the State-owned Land Use Rights Certificate of the Property is in progress. Our Ref.: CV/2011/VPS/0075/CC/AL/MW/JWO/ck Page 13

18 The aforesaid documents are attached in Appendix II for information. 11. VALUATION ISSUES DEFINITION OF MARKET VALUE Unless otherwise stated in the appraisal assignment and contract, the estimate of value sought shall be that of market value. Market value is defined by the Hong Kong Institute of Surveyors to mean: the estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm s-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion METHOD OF VALUATION To determine the market value of the Property, consideration was given to the application of both Direct Comparison Method and Direct Capitalization Method. Direct Comparison Method ( DCM ) DCM is the most common and reliable valuation approach on the condition that there are sufficient comparable transactions available in the current market. The rationale of this approach is to directly relate sales prices or rental prices of properties similar to the Property. Adjustments are made to comparable transactions to reflect differences between the Property and comparables. The key strength of this method is that it directly reflects the actions of buyers and sellers in the market. In determining the market value of the Property, sales prices of four pieces of logistics land comparables have been considered. These comparables are all located at Pudong New Development District. These four comparables have been selected based on similarities of condition. Details of these comparable properties are listed below: Our Ref.: CV/2011/VPS/0075/CC/AL/MW/JWO/ck Page 14

19 Comparables Location Transaction Date Transaction Price* (RMB/Mu) Plot , Waigaoqiao Pudong February ,050,642 Plot 6-1, Caolu Industry Park Pudong October ,271,007 Plot , Waigaoqiao Pudong February ,050,002 Plot 3, Phase 2, Waigaoqiao Pudong January ,083,347 *Rounded to the nearest hundredth Source: Savills Valuation We have made adjustments to the aforesaid land sales comparables in order to reflect the actual market situation and price level of the Property. We have adopted a unit rate on side area of RMB1,600 per sq.m. or RMB1,070,000 per Mu. Direct Capitalization Method In this approach, a valuation indication is based on a property s expected future operating income. This approach provides a reliable estimate of market value to an investor seeking a set of returns on capital as it attempts to mirror the investment rational of the real estate investor. On the basis of the continued use of the Property for non-ancillary and underground car-park purposes, we have adopted the direct capitalization method to assess market value. This is on the basis that the Property could generate an income which could then be capitalized with Property being sold as an investment. A summary of the parameters used in the direct capitalization analysis is shown below: Process Zone Factory/Duty City Container Yard Container Yard Free Office (RMB/TEU/Day) (RMB/SQ.M./Day) Logistics Zone Warehouse Building Warehouse (RMB/SQ.M./ (RMB/SQ. (RMB/SQ.M./Day) Day) M./Day) Port Ningbo (Domestic Container) Port Shanghai (Domestic Container) Our Ref.: CV/2011/VPS/0075/CC/AL/MW/JWO/ck Page 15

20 Process Zone Factory/Duty City Container Yard Container Yard Free Office (RMB/TEU/Day) (RMB/SQ.M./Day) Logistics Zone Warehouse Building Warehouse (RMB/SQ.M./ (RMB/SQ. (RMB/SQ.M./Day) Day) M./Day) Port Tianjin (Domestic Container) Port Guangzhou Port Qingdao 8 (Domestic) 300 (International.) (Domestic Container) Port Dalian (Domestic Container) Port Shenzhen 4 (Domestic) 150 (International) (RMB/M3/Day) Port Xiamen (Domestic Container) Port Hong Kong (International Container) (RMB/M3/Day) Source: Savills Valuation With the reference to the aforesaid comparables, we have adopted daily rentals for office and warehouses of the proposed development at RMB1.5 and RMB1.2 on GFA respectively. In the course of our valuation, an 8 percent yield is determined to arrive at unit rates of market values for office and warehouse at RMB6,200 and RMB5,000 on GFA respectively. Our Ref.: CV/2011/VPS/0075/CC/AL/MW/JWO/ck Page 16

21 11.3. HIGHEST AND BEST USE Highest and best use is defined as the reasonably probable and legal use of vacant land or improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. (The Appraisal of Real Estate, 11th Edition, Appraisal Institute, 1996) Highest and best use shall be considered to apply to the immediate future, which shall mean a period of time not exceeding five years. We have examined various approaches to obtain the value indications for the Property. As the permitted use for the Property is for logistics use in accordance with the planning schedule, it is reasonable that the highest and best use for the Property should remain this permitted usage. We, therefore, conclude that the highest and best use of the Property is for logistics and its ancillary facilities uses. 12. VALUATION ASSUMPTIONS We have prepared our valuation on the following assumptions: i. the Group has possessed the land use rights and ownership of the Property and it is freely transferrable in the market with its residual term of its land use rights at no extra land premium and other onerous charges payable; ii. all land premium and costs of public utilities services of the Property would have been settled in full; iii. the design and construction of the proposed development will be in compliance with the local planning regulations and will have been approved the relevant government authorities; and iv. the Property can be freely disposed of to local and overseas purchaser. Our Ref.: CV/2011/VPS/0075/CC/AL/MW/JWO/ck Page 17

22 13. CURRENT MARKET VALUE In view of the above, we are of the opinion that the current market values of the Property, free from all encumbrances, are tabulated as follows: 1. Current site value of the Property in a clear and formed state RMB1,400,000,000 (RENMINBI ONE BILLION AND FOUR HUNDRED MILLION ONLY) 2. Current market value of the Property in a completed status RMB2,800,000,000 (RENMINBI TWO BILLION AND EIGHT HUNDRED MILLION ONLY) 14. REMARKS This report and valuation are subject to the attached limiting conditions as appended in Appendix III. Yours faithfully, For and on behalf of Savills Valuation Professional and Services Limited Charles C K Chan MSc FRICS FHKIS MCIArb RPS(GP) Managing Director Encl. Our Ref.: CV/2011/VPS/0075/CC/AL/MW/JWO/ck Page 18

23 APPENDICES APPENDIX I - LOCATION PLAN APPENDIX II - DOCUMENTS APPENDIX III - SAVILLS STANDARD AND LIMITING CONDITIONS Our Ref.: CV/2011/VPS/0075/CC/AL/MW/JWO/ck

24 APPENDIX I LOCATION PLAN Our Ref.: CV/2011/VPS/0075/CC/AL/MW/JWO/ck

25 Location Plan For Identification Purposes only Our Ref.: CV/2011/VPS/0075/CC/AL/MW/JWO/ck

26 APPENDIX II DOCUMENTS Our Ref.: CV/2011/VPS/0075/CC/AL/MW/JWO/ck

27 Our Ref.: CV/2011/VPS/0075/CC/AL/MW/JWO/ck bcd

28 Our Ref.: CV/2011/VPS/0075/CC/AL/MW/JWO/ck bcd

29 Our Ref.: CV/2011/VPS/0075/CC/AL/MW/JWO/ck bcd

30 Our Ref.: CV/2011/VPS/0075/CC/AL/MW/JWO/ck bcd

31 Our Ref.: CV/2011/VPS/0075/CC/AL/MW/JWO/ck bcd

32 Our Ref.: CV/2011/VPS/0075/CC/AL/MW/JWO/ck bcd

33 APPENDIX III SAVILLS STANDARD AND LIMITING CONDITIONS Our Ref.: CV/2011/VPS/0075/CC/AL/MW/JWO/ck

34 1. Our valuation is on the basis of Market Value, which is defined as follows: The estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller, in an arm s-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion. The estimated amount is the best price reasonably obtainable by the seller and the most advantageous price reasonably obtainable by the buyer. This estimate specifically excludes an estimated price inflated or deflated by special terms or circumstances such as atypical financing, sale and leaseback arrangements, joint ventures, management agreements. Special considerations or concessions granted by anyone associated with the sale, or any element of special value. The market value of a property is also estimated without regard to costs of sale and purchase, and without offset for any associated taxes. 2. Unless otherwise stated, we have assumed that the owner of the property has enforceable title to the property, and has free and uninterrupted rights to use the property for the whole of unexpired land use term as granted subject to payment of annual land use fees and that all requisite land use rights grant premium consideration payable have been fully settled. Furthermore, we have valued it on the assumption that it is freely disposable and transferable to third party on the market without paying any additional premium or other onerous payment. 3. We have not, however, searched the original documents to verify ownership or to ascertain the existence of any amendments which do not appear on the copies handed to us. 4. We have relied on the advice given by you regarding the title to the property in the PRC. For the purpose of our valuation, we have assumed that the owner has enforceable title to the property. In our valuation, we have exercised our professional judgement in arriving at the valuation but you are urged to consider our valuation assumptions with caution. 5. We have not inspected the property. We have not carried out investigations on site to determine the suitability of the ground conditions and the services etc. for any future development. Our valuation is prepared on the assumption that these aspects are satisfactory. No tests were carried out on any of the services we have not been able to carry out detailed on-site measurements to verify the site and floor areas of the property and have assumed that the site and floor areas shown on the copies of documents handed to us are correct. Our Ref.: CV/2011/VPS/0075/CC/AL/MW/JWO/ck

35 6. Having examined all relevant documentation, we have relied to a considerable extent on the information given by you, particularly in respect of planning approvals or statutory notices, easements, tenure, particulars of occupancy, building specifications, site and floor areas and in the identification of the property in which the owner has valid interest. All documents have been used for reference only. Except otherwise stated, all dimensions, measurements and areas included are based on information contained in the documents provided to us by you. We have also been advised by you that no material facts have been omitted form the information provided and have no reason to suspect that any material information has been withheld. 7. Unless other stated, no allowance has been made in our valuation for any charges, mortgages or amounts owing on the property valued nor for any expenses or taxation which may be incurred in effecting a sale. Unless otherwise stated, it is assumed that the property is free form encumbrances, restrictions and outgoings pf am onerous nature which could affect it value. 8. Neither the whole nor any part of this valuation report nor any reference thereto may be included in any documents, circular or statement without our written approval of the form and context in which it will appear. 9. Finally, in accordance with our standard practice, we would state that this report is provided solely for the purpose stated above. It is confidential to and for the use only of the party to whom it is addressed and no responsibility is accepted to any third party for the whole or any part of its contents. * * * * * Our Ref.: CV/2011/VPS/0075/CC/AL/MW/JWO/ck