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CHINA SCE PROPERTY HOLDINGS LIMITED

中 駿 置 業 控 股 有 限 公 司

(incorporated in the Cayman Islands with limited liability)

(Stock Code: 1966)

DISCLOSEABLE TRANSACTION ACQUISITION OF LAND USE RIGHT IN QUANZHOU

On 20 January 2014, Fujian Zhongjun became the successful bidder after public bidding through an auction for the acquisition of the land use rights of the Land which is situated at Quanzhou City, Fujian Province, the PRC at the Consideration of RMB618 million and has entered into the Confirmation Letter with Quanzhou Property Rights Exchange Center (acting as agent for Quanzhou Land Bureau).
Since the applicable percentage ratio as calculated in accordance with Rule 14.07 of the Listing Rules is more than 5% but less than 25%, the Acquisition constitutes a discloseable transaction of the Company under the Listing Rules.
INTRODUCTION
The Board announces that on 20 January 2014, Fujian Zhongjun became the successful bidder after public bidding through an auction for the acquisition of the land use rights of the Land which is situated at Quanzhou City, Fujian Province, the PRC at the Consideration of RMB618 million and has entered into the Confirmation Letter with Quanzhou Property Rights Exchange Center (acting as agent for Quanzhou Land Bureau).
PARTICULARS OF THE AUCTION
Date of the auction and the Confirmation Letter
20 January 2014
Parties to the Confirmation Letter
(i) Quanzhou Property Rights Exchange Center
(ii) Fujian Zhongjun

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The Directors confirmed that, to the best of their knowledge, information and belief having made all reasonable enquiry, the Quanzhou Property Rights Exchange Center, Quanzhou Land Bureau and their ultimate beneficial owners are third parties independent of the Group and its connected persons.
INFORMATION OF THE LAND
The Land is located at east of 東海組團雲山片區坪山路 (Pingshan Road, Yun Shan Pian District, Donghai Zu Tuan*), Quanzhou City, Fujian Province, the PRC with a total site area of 45,731.6 square metres with a plot ratio of more than 1 but not more than 4 and a gross floor area of not exceeding 182,926.4 square metres. The Land shall be used for commercial and residential purpose. The term of Land Use Right is 40 years for commercial purpose and
70 years for residential purpose.
LAND USE RIGHT TRANSFER AGREEMENT
Following the acquisition of the Land Use Right through the auction, the Project Company shall enter into the Land Use Right Transfer Agreement with Quanzhou Land Bureau before
27 January 2014.
CONSIDERATION
The Consideration is RMB618 million, which was determined after public bidding through an auction. In determining the Consideration, the Company has taken into account of various factors including price of the land in vicinity, current property market conditions and development prospect and the potential of the Land.
The Consideration shall be payable by the Group in cash in the following manner:
(i) 50% thereof shall be payable within 30 days of the successful bid of the land use right of the Land (the ''First Instalment''); and
(ii) 50% thereof, on a monthly basis, shall be payable within six months of the successful bid of the land use right of the Land.
A security deposit of RMB123 million has been paid to enable Fujian Zhongjun to participate in the auction, which shall be used in settlement of part of the First Instalment.
The Consideration will be financed by internal resources of the Group.
REASONS FOR AND BENEFITS OF THE ACQUISITION
The Group is principally engaged in property development, property investment and property management in the PRC. The Acquisition is in line with the corporate strategy of the Group to accelerate its business expansion by increasing its land bank and development in well-developed cities in the PRC. It is expected that the Acquisition together with the premises to be constructed on the Land will further strengthen the Group's market position and brand in the property business in the PRC.
The Board believes that the terms of the Acquisition are fair and reasonable and are in the interests of the Group and the Shareholders as a whole.

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INFORMATION ON QUANZHOU PROPERTY RIGHTS EXCHANGE CENTER AND THE QUANZHOU LAND BUREAU
Quanzhou Property Rights Exchange Center is an exchange platform established by the government to provide property rights exchange services.
Quanzhou Land Bureau is a governmental authority which is responsible for, among others, organising and implementing tender, auction and listing-for-sale procedures and ancillary matters for granting or transferring land use rights of state-owned land in Quanzhou City, Fujian Province, the PRC.
LISTING RULES IMPLICATION
Since the applicable percentage ratio as calculated in accordance with Rule 14.07 of the Listing Rules is more than 5% but less than 25%, the Acquisition constitutes a discloseable transaction of the Company under the Listing Rules.
DEFINITIONS
In this announcement, unless the context otherwise requires, the following expressions have the following meanings:

''Acquisition'' the acquisition of the Land Use Right

''Board'' the board of Directors

''Company'' China SCE Property Holdings Limited, a company incorporated under the laws of the Cayman Islands with limited liability and the shares of which are listed on the Main Board of the Stock Exchange

''Confirmation Letter'' 成交確認書 (confirmation letter*) entered into between Quanzhou Property Rights Exchange Center (acting as agent for Quanzhou Land Bureau) and Fujian Zhongjun dated 20

January 2014 in connection with the Acquisition

''Consideration'' RMB618 million, being the consideration for the

Acquisition

''Director(s)'' director(s) of the Company

''Fujian Zhongjun'' 福建中駿置業有限公司 (Fujian Zhongjun Property Co., Ltd.*), a company incorporated in the PRC with limited liability which is an indirect wholly-owned subsidiary of the Company

''Group'' the Company and its subsidiaries

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''Land'' a parcel of land located at east of 東海組團雲山片區坪山路

(Pingshan Road, Yun Shan Pian District, Donghai Zu
Tuan*), Quanzhou City, Fujian Province, the PRC with a total site area of 45,731.6 square metres with a plot ratio of more than 1 but not more than 4 and a gross floor area of not exceeding 182,926.4 square metres

''Land Use Right'' land use right of the Land

''Land Use Right Transfer

Agreement''

國有建設用地使用權出讓合同 (land use right transfer

agreement*) to be entered into between Quanzhou Land
Bureau and the Project Company in respect of the Land

''Listing Rules'' the Rules Governing the Listing of Securities on the Stock

Exchange

''PRC'' People's Republic of China

''Project Company'' a company to be established in the PRC with limited liability which shall be wholly-owned by Fujian Zhongjun for the purpose of the Acquisition and/or the development of the premises to be constructed on the Land

''Quanzhou Land Bureau'' 泉州市國土資源局 (Quanzhou Bureau of Land Resources*)

''Quanzhou Property Rights

Exchange Center''

泉州市產權交易中心有限公司 (Quanzhou Property Rights

Exchange Center Co., Ltd.*)

''RMB'' Renminbi, the lawful currency of the PRC

''Shareholder(s)'' shareholder(s) of the Company

''Stock Exchange'' The Stock Exchange of Hong Kong Limited

''%'' per cent.

* the English translation of the Chinese name and/or term is for information purposes only, and should not be regarded as the official English translation of such name and/or term.

By order of the Board
China SCE Property Holdings Limited
Wong Chiu Yeung
Chairman
Hong Kong, 23 January 2014
As at the date of this announcement, the executive Directors are Mr. Wong Chiu Yeung, Mr. Chen Yuanlai, Mr. Cheng Hiu Lok, Mr. Li Wei and Mr. Huang Youquan, and the independent non-executive Directors are Mr. Ting Leung Huel Stephen, Mr. Lu Hong Te and Mr. Dai Yiyi.

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