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09-06-2008

Henderson Land Acquires Interests in Shatin and Conduit Road Developments

(Hong Kong - June 9, 2008) Henderson Land Development Company Limited ("Henderson Land") announced today the acquisition of 100% interest in Shatin Town Lot No. 539 and 60% interest in No.39 Conduit Road, through its subsidiaries, from companies controlled by the private trust of the family of Dr the Hon Lee Shau Kee, Chairman of Henderson Land Group.

The considerations for the acquisition of interests in the Shatin development and the Conduit Road development are approximately HK$548.90 million and HK$729.66 million respectively. Both are estimated on the basis of the Net Asset Value, representing a discount of 25% of the valuation by the independent valuer of the two developments (on a completed basis), minus additional development costs for completing the projects and outstanding bank loans.

Henderson Land, as the acquirer, is also guaranteed a 25% premium on the discounted value of each of the two developments. If, upon expiry of two years from the date of the occupation permit issuance, the sum of the gross sale price of the sold units and the value of unsold units based on a valuation by the independent valuer falls short of the discounted value of the respective development as increased by a 25% guaranteed premium, the Group shall be paid the shortfall by the vendors.

The Shatin development is a proposed residential development with an estimated Gross Floor Area of approximately 358,048 sq.ft., comprising two blocks of 33-storey highrise residential buildings, four blocks of lowrise residential buildings and ancillary parking spaces and other facilities. The valuation of the development as at 30 May 2008 was HK$3,487 million while the discounted value for purposes of calculating the consideration was HK$2,615.25 million (or HK$7,304 per sq.ft.). The construction work is anticipated to be completed by the end of April 2009.

The Conduit Road development is a residential development with estimated Gross Floor Area of approximately 229,255 sq.ft., comprising a single block of 46-storey residential building with 6-storey podium carpark, 1-storey club house and 39-storey residential floors. The development provides 66 residential units and 104 car parking spaces. The valuation of the development as at 30 May 2008 was HK$3,900 million while the discounted value for purposes of calculating the consideration was HK$2,925 million (or HK$12,759 per sq.ft.). The construction work is anticipated to be completed by the end of March 2009.

The acquisition of the two developments will increase the Group's land bank portfolios in Hong Kong. With the 25% discount and 25% guaranteed premium as described above, the Group considered the transactions as fair and reasonable on normal commercial terms and in the interests of the Company and its shareholders.