Hong Kong, 12 October, 2005 - Shui On Land Limited (SOL), the Shui On Group's flagship property company in the Chinese Mainland, today announced that it has successfully completed a US$375 million corporate bond placement.

The bond, which has a tenor of three years, features a coupon of 8.5% per annum and warrants exercisable for the purchase of approximately 3.1% of the ordinary outstanding shares of Shui On Land Limited. Proceeds of the bond will be used to fund the development of existing projects as well as the recently acquired site in Wuhan which is expected to be an exciting city-core development project.

In a strong show of support, existing investors participated in the offering, including Mr. Vincent H.S. Lo, Chairman and CEO of Shui On Land, as well as Shui On Land Preference Shareholders (ERGO Tru Asia Limited, Metro Holdings Limited, Citigroup Venture Capital International, Ocean Equity Holdings Limited, Value Partners Funds, Standard Chartered Bank and Jebsen & Company Limited).

The bonds were also sold to a select group of global institutional investors, broadening Shui On Land's existing investor base.

JPMorgan acted as the Sole Bookrunner and Placement Agent for the bond issue. BOC International acted as advisor on the transaction.

"Our vision is to be the best property developer in the Chinese Mainland," said Vincent H.S. Lo, Chairman and CEO of Shui On Land. "I believe that the success of this bond placement reflects strong investor confidence in our strategy and management team, and it is an important step towards achieving our goal."

"We would like to thank all our investors for their strong support for Shui On Land. It is a very positive affirmation of Shui On Land's vision, strategy and prospects for future growth," said Tim Addison, Managing Director, Corporate Finance and Development, SOL.

The majority of the proceeds will be used to fund SOL's latest project, a large-scale, city-core development in Wuhan. Situated on approximately 61.2 hectares of land and with a total gross floor area upon completion of approximately 1.5 million square meters, this mixed-use project will feature Grade A office buildings, high-end retail and residential properties and a luxury hotel. Additional funds will be allocated for Taipingqiao, a city-core development in Shanghai that typifies SOL's approach to master planning and development. Encompassing 52 hectares of mixed-use office, residential, retail, entertainment and cultural properties in the center of Shanghai, Taipingqiao features the internationally-renowned Shanghai Xintiandi.

Notes to Editors

About Shui On Land

Established in 2004 and headquartered in Shanghai, Shui On Land Limited is a substantial property company consolidating prime developments of the Shui On Group in the Chinese Mainland. With a proven track record in the Chinese Mainland and Hong Kong, the Shui On Group is well established as one of China's visionary and innovative property developers. Backed by a prestigious group of co-investors, which includes ERGO Tru Asia, Metro Holdings, Citigroup Venture Capital International, Ocean Equity Holdings, Value Partners Funds, Standard Chartered Bank, Shanghai Hotel Investments and Jebsen & Company, Shui On Land leverages the Group's proven track record to provide high-quality growth opportunities. Shui On Land's projects feature unique commercial, residential and mixed-use developments. The Company focuses on two key business segments in the Chinese Mainland market: City Core Development Projects, which are large-scale, mixed-use redevelopments, and Integrated Residential Development Projects, which are high-quality developments offering full amenities and consistent with overall city infrastructure planning. For further information, please visit www.shuionland.com.


Media Contacts

Shui On Land Limited
Christine Mui / Stephanie Lin
Tel: (852) 2879 1866
Fax: (852) 2787 4211
E-mail: corpcomm@shuion.com.hk