09:49     SHK PPT<00016> - Announcement (1)                                   

    The Stock Exchange of Hong Kong Limited takes no responsibility for       
    the contents of this announcement, makes no representation as to its      
    accuracy or completeness and expressly disclaims any liability            
    whatsoever for any loss howsoever arising from or in reliance upon        
    the whole or any part of the contents of this announcement.               
                                                                              
                                                                              
    Sun Hung Kai Properties Limited                                           
    (incorporated in Hong Kong with limited liability)                        
    (Stock Code: 16)                                                          
                                                                              
    CONNECTED TRANSACTION                                                     
                                                                              
                                                                              
    On 4 April 2005, the Vendor and the Purchaser entered into the            
    Sale and Purchase Agreement pursuant to which the Purchaser has           
    agreed to acquire from the Vendor the Sale Shares and the Sale Loan       
    at the aggregate consideration of US$18,894,769 (approximately            
    HK$147,379,198).                                                          
                                                                              
    Since the Vendor is a substantial shareholder of Widegood which is a      
    subsidiary of the Company, it is a connected person of the Company        
    for the purposes of the Listing Rules, the Acquisition constitutes a      
    connected transaction for the Company under the Listing Rules. As the     
    relevant percentage ratios calculated under Rules 14.07(1) and            
    14.07(3) of the Listing Rules in respect of the Acquisition are more      
    than 0.1% but less than 2.5%, the Company is required by the Listing      
    Rules to disclose particulars of the Acquisition by way of an             
    announcement but is exempted from the independent shareholders'           
    approval requirements under the Listing Rules.                            
                                                                              
                                                                              
    SALE AND PURCHASE AGREEMENT DATED 4 April 2005                            
    The parties                                                               
    Vendor :                       ITOCHU Corporation, a company              
                                   incorporated in Japan whose                
                                   shares are listed on the                   
                                   Tokyo Stock Exchange, Inc.                 
                                   owning at the date of the                  
                                   Sale and Purchase Agreement                
                                   approximately 31.58% interest              
                                   in Widegood and therefore a                
                                   connected person of the                    
                                   Company within the meaning of              
                                   the Listing                                
                                   Rules.                                     
    Purchaser :                    Sun Hung Kai Development                   
                                   (China) Ltd., a company                    
                                   incorporated in Hong Kong and              
                                   a wholly-owned subsidiary of               
                                   the                                        
                                   Company.                                   
                                                                              
                                                                              
                                                                              
    Assets to be acquired                                                     
    Pursuant to Sale and Purchase Agreement, the Purchaser has agreed to      
    acquire from the Vendor:                                                  
                                                                              
    (a)                                                                       
    the Sale Shares at the consideration of US$30 (approximately              
    HK$234); and                                                              
                                                                              
    (b)                                                                       
    the Sale Loan at the consideration of US$18,894,739 (approximately        
    HK$147,378,964).                                                          
                                                                              
    The above consideration was arrived at after arms length                  
    negotiations between the Vendor and the Purchaser by reference to the     
    aggregate nominal value of the Sale Shares and the face value of the      
    principal amount of the Sale Loan of US$18,894,739 (approximately         
    HK$147,378,964). The Vendor's investment costs in the Sale Shares and     
    the Sale Loan were US$30 (approximately HK$234) and US$18,894,739         
    (approximately HK$147,378,964) respectively.                              
                                                                              
    Completion of the Acquisition is not subject to any conditions and        
    took place immediately after the signing of the Sale and Purchase         
    Agreement. The consideration was paid by the Purchaser to the Vendor      
    in cash upon completion and was funded by the internal resources of       
    the Group.                                                                
                                                                              
    INFORMATION ON WIDEGOOD                                                   
    Widegood is a company incorporated in the British Virgin Islands          
    with limited liability on 24 November 1993. Prior to completion of        
    the Sale and Purchase Agreement, Widegood was owned as to                 
    approximately 31.58% by the Vendor and approximately 68.42% by the        
    Purchaser. The Purchaser acquired up to 68.42% shareholding interest      
    in Widegood on 27 June 1994. The principal activity of Widegood is        
    the holding of approximately 97.14% equity interests in Xin Zhong         
    Hui, which owns and operates Arcadia Shanghai, a residential property     
    project located in Xuhui, Shanghai, the PRC. The remaining                
    approximately 2.86% interests in Xin Zhong Hui is owned by an             
    independent third party not connected with the directors, chief           
    executive or substantial shareholder of the Company or its                
    subsidiaries or any of their respective associates.