09:18 HOPSON DEV HOLD<00754> - Announcement (3) Site 1 and Site 2 are adjacent lands. The Sites are located in the prime area near the central business district of Beijing City, PRC. The aggregate gross floor area of the Sites amounts to approximately 206,750 square metres of which approximately 204,750 square metres will be saleable. It is the Group's preliminary plan to construct approximately 1,560 residential units with an aggregate area of approximately 169,750 square meters, shopping arcade with an aggregate area of approximately 9,000 square metres and 700 car-parking spaces with an aggregate area of approximately 26,000 square metres on the Sites primarily for sale purpose. Unsold shopping arcade and car-parking spaces would be held as non-current assets of the Group primarily for leasing purpose. It is anticipated that the total capital expenditure (exclusive of the land costs) of the development of the Sites would amount to approximately RMB581 million (equivalent to approximately HK$548.11 million). It is estimated that 40% of the total capital expenditure (exclusive of the land costs) would be financed by bank borrowings and the remaining balance by internal resources of the Group. The Directors consider that the Transaction is in the ordinary and usual course of business of the Group and the terms of the Land Transfer Agreements are normal commercial terms which are fair and reasonable so far as the Shareholders are concerned and are in the interest of the Company. DISCLOSEABLE TRANSACTION As the percentage ratio for the Transaction is more than 5% but less than 25%, the Transaction constitutes a discloseable transaction of the Company under Rule 14.06(2) of the Listing Rules. A circular containing details of the Transaction in accordance with the requirements of Rule 14.64 will be dispatched to the Shareholders as soon as practicable. GENERAL As at the date hereof, the executive Directors are CHU Mang Yee, XIANG Bin, AU Wai Kin, CHEN Chang Ying and XIAO Yan Xia and the independent non-executive Directors are YUEN Pak Yiu, Philip, LEE Tsung Hei, David and WONG Shing Kay, Oliver. TERMS USED IN THIS ANNOUNCEMENT "Aggregate Consideration" the aggregate of Consideration 1 and Consideration 2 "Company" Hopson Development Holdings Limited "Consideration 1" the consideration for the acquisition of Site 1 of RMB243,695,800 "Consideration 2" the consideration for the acquisition of Site 2 of RMB267,351,050 "Directors" the directors of the Company "Group" the Company and its subsidiaries "Hong Kong" the Hong Kong Special Administrative Region of the PRC "HK$" Hong Kong dollars, the lawful currency of Hong Kong "Hopson Lu Zhou" * Beijing Hopson Lu Zhou Real Estate Development Limited, a company established in PRC and an indirect wholly-owned subsidiary of the Company "Jin Yu Real Estate" * Beijing Jin Yu Jia Ye Real Estate Development Company, a company established in the PRC whose principal business is property development and not a connected person of the Company as defined in the Listing Rules "Land Transfer Agreement 1" the land use rights transfer agreement dated 8 March, 2005 entered into between Hopson Lu Zhou and Jin Yu Real Estate for the acquisition of the land use rights of Site 1 "Land Transfer Agreement 2" the land use rights transfer agreement dated 8 March, 2005 entered into between Hopson Lu Zhou and Jin Yu Real Estate for the acquisition of the land use rights of Site 2 "Land Transfer Agreements" Land Transfer Agreement 1 and Land Transfer Agreement 2 "Listing Rules" the Rules Governing the Listing of Securities on the Stock Exchange "PRC" the People's Republic of China "RMB" Renminbi, the lawful currency of the PRC