09:48 MACAU SUCCESS<00487>-Announcement & Resumption of Trading(4) Property Development for the period from 20 February 2004 (date of incorporation) to 31 December 2004 amounted to approximately MOP89,600 (equivalent to approximately HK$86,990); and (ii) the net assets value of Pier 16 - Property Development amounted to approximately MOP9.9 million (equivalent to approximately HK$9.6 million) as at 31 December 2004. The accountants' report of Pier 16 - Property Development prepared in accordance with the generally accepted accounting principles in Hong Kong will be included in the circular to be despatched by the Company in connection with the Agreement and the transactions contemplated thereunder and the possible provision of additional shareholder's loans to Pier 16 - Property Development. Source of financing: All investment amounts to be made by Pier 16 - Property Development for the development of Ponte 16 will be firstly financed by external loans to be arranged by Pier 16 - Property Development. If required by the provider of the external loans, the shareholders of Pier 16 - Property Development will provide guarantees on a several basis in proportion to their respective equity interests in Pier 16 - Property Development. If the external loans are insufficient to meet the funding requirement of Pier 16 - Property Development, the shareholders of Pier 16 - Property Development shall provide shareholders' loans to Pier 16 - Property Development in proportion to their respective equity interests in Pier 16 - Property Development. INFORMATION ON THE LAND PARCEL According to the formal notice for the granting of the lease in respect of the Land Parcel on the "Macau Official Gazette" published on 14 February 2005, the Government of Macau has leased the Land Parcel to Pier 16 - Property Development for the development of a theme park construction project, namely Ponte 16, for a term of 25 years commencing from 14 February 2005 and renewable thereafter in accordance with the laws of Macau. The Land Parcel: The Land Parcel is a leasehold land with a total site area of approximately 23,066 square metres and is located at between Pier No. 12A to 20, Inner Harbour of Macau. According to development plan for Ponte 16, the total gross floor areas of any building or buildings erected or to be erected on the site shall be approximately 63,584 square metres. Land Premium: The land premium of the Land Parcel payable by Pier 16 - Property Development amounted to MOP89,876,351 (equivalent to approximately HK$87.26 million), of which: (i) MOP40,000,000 (equivalent to approximately HK$38.83 million) has been paid to the Government of Macau; (ii) MOP46,791,351 (equivalent to approximately HK$45.43 million) with the interest accrued thereon at a rate of 5% will be payable to the Government of Macau semi-annually through three equivalent installments of MOP16,383,391 (equivalent to approximately HK$15.91 million). The first installment will be payable by Pier 16 - Property Development within six months after the date of the formal notice for the granting of the lease in respect of the Land Parcel being published on "Macau Official Gazette", which is 14 February 2005; and (iii) MOP3,085,000 (equivalent to approximately HK$3 million) will be satisfied by the construction of the No. 11A Pier, which will be located outside the Land Parcel, by Pier 16 - Property Development according to the construction specifications required by the Government of Macau. The payment of the aforesaid land premium of MOP40 million (equivalent to approximately HK$38.83 million) was financed by loans provided by the shareholders of Pier 16 - Property Development. As at 31 December 2004, the total shareholders' loans amounted to approximately HK$66.9 million, of which approximately HK$61.9 million, HK$2.5 million and HK$2.5 million were contributed by SJM-Investimentos, World Fortune and Joy Idea respectively. Payment of land rent: A land rent at a rate of MOP12 (equivalent to approximately HK$11.7) per square metres (or in aggregate MOP276,792 (equivalent to approximately HK$268,730)) in respect of the Land Parcel is payable by Pier 16 - Property Development to the Government of Macau annually. Such land rent rate is subject to revision by the Government of Macau every five years from the date of the aforesaid formal notice in respect of the Land Parcel being published on "Macau Official Gazette".