09:27     CHEUNG KONG<00001> - Announcement (2)                               

    and conditions set out therein                                            
                                                                              
    Changsha Land Use Right Transfer Contract:                                
                                                                              
    Parties:        (1)     JVCo2                                             
    (2)     Changsha Land Bureau                                              
                                                                              
    Date:   26th April, 2005                                                  
                                                                              
    Subject Matter: The transfer of the land use right in respect             
    of the Changsha Land subject to and on the terms and conditions           
    set out therein                                                           
                                                                              
    The Board of CKH wishes to announce that JVCo1 and JVCo2, new             
    indirect 50/50 joint venture companies of CKH and HWL, have been          
    established on 18th April, 2005 and 15th April, 2005 respectively         
    for the sole purpose of owning and developing the Changchun Land          
    for development into residential and commercial properties and            
    the Changsha Land for development into residential properties.            
                                                                              
    Pursuant to the Changchun Land Use Right Transfer Contract, JVCo1         
    agreed to acquire the land use right in respect of the Changchun          
    Land for a consideration of RMB281,000,000 (approximately                 
    HK$264,140,000) payable by instalments and subject to the terms           
    and conditions set out therein.                                           
                                                                              
    Pursuant to the Changsha Land Use Right Transfer Contract, JVCo2          
    agreed to acquire the land use right in respect of the Changsha           
    Land for a consideration of RMB292,271,813 (approximately                 
    HK$274,735,504) payable by instalments and subject to the terms           
    and conditions set out therein.                                           
                                                                              
    To fund the payment of land cost, construction costs and other            
    project costs for the development of the Changchun Land and the           
    Changsha Land, the total investment and registered capital of             
    JVCo1 are proposed to be US$52,800,000 (approximately                     
    HK$411,840,000) and US$18,500,000 (approximately                          
    HK$144,300,000), and the total investment and registered capital          
    of JVCo2 are proposed to be RMB413,000,000 (approximately                 
    HK$388,220,000) and RMB149,000,000 (approximately                         
    HK$140,060,000) respectively.                                             
                                                                              
    Any contribution to the registered capital of, and any                    
    shareholders' loans to, each of JVCo1 and JVCo2 is expected to            
    be made equally by indirect subsidiaries of CKH and HWL in                
    proportion to their respective equity interests in JVCo1 and              
    JVCo2 respectively. It is expected that any profit of JVCo1 and           
    JVCo2 is to be ultimately shared equally by indirect subsidiaries         
    of CKH and HWL in proportion to their respective indirect equity          
    interests in each of JVCo1 and JVCo2.                                     
                                                                              
    Reasons for the transactions                                              
                                                                              
    The principal activities of the CKH Group are investment holding,         
    property development and investment, hotel and serviced suite             
    operation, property and project management and investments in             
    securities.                                                               
                                                                              
    The HWL Group operates and invests in five core businesses: ports         
    and related services; property and hotels; retail and                     
    manufacturing; energy, infrastructure, finance and investments;           
    and telecommunications.                                                   
                                                                              
    The addition of the Changchun Land and the Changsha Land to the           
    landbank for development into residential and/or commercial               
    properties respectively are consistent with one of the core               
    business strategies for CKH.                                              
                                                                              
    Connected transactions                                                    
                                                                              
    HWL is a substantial shareholder of certain subsidiaries