The land consists of 2 plots: Plot A and Plot B with a total site area of 127,000 sq.m. and expected permitted GFA of 230,000 sq.m., its average land cost is approximately RMB1,600 per sq.m. To further implement the Group’s strategy on maintaining a balance mix of residential and commercial projects and enhance the projects’ value, the Group plans to develop the acquired land into a commercial and residential complex. As the land has been leveled, construction of phase I has already started and it is expected to be launched for sale in the second half of 2011. With excellent development potential, this project not only strengthens the Group’s high quality land bank, but also ensures a quick capital returns, helping the Group maintain a Kunshan is a newly developed industrial and commercial city which is located in the most economically developed area in China— the Yangtze River Delta, adjacent to Shanghai and Suzhou with convenient transport facilities and premium physical situation. The land acquired by the Group is situated within the 1-hour life circle zone with Shanghai as the centre. The land is connected to a number of major transportation routes and enjoys superior transportation convenience and geographical advantages. Located next to a central park with 13,000 sq.m. of luscious greenery, the land is only 3.5km away from the Huaqiao station of Shanghai Metro Line 11.

The project will consist of multi-storey garden villas, low rise and high rise apartments, houses and commercial units. The Group plans to develop it into a signature project for low-carbon housing complex in the Yangtze River Delta region, which is set to become the priority choice for homebuyers in search of ultimate comfort and pleasure in Shanghai and Suzhou.

Mr. Guo Zi Wen, Chairman of Aoyuan, said, ―I am very pleased about the successful land acquisition, which helps the Group rapidly expand into the Yangtze River Delta market. As an important strategic move, this acquisition also underscores Aoyuan’s commitment to nationwide expansion. Since the land is located in Kunshan, one of the most important economic zones in the Yangtze River Delta region and in close proximity of Shanghai, it is believed that this project will offer huge development and return potential. In the future, the Group will seize and explore more investment opportunities in a prudent and constructive manner. By ensuring the Group’s leadership in existing markets, the Group will commit to make further expansion to other regions, as well as optimize land bank reserve, thereby increase returns for the shareholders.