PROPERTY VALUATION REPORT

Transcription

1 The following is the text of a letter, summary of values and valuation certificates, prepared for the purpose of incorporation in this prospectus received from Sallmanns (Far East) Limited, an independent valuer, in connection with its valuation as at of the property interests of the Group. As described in section Documents Available for Inspection in Appendix X, a copy of the full valuation report will be made available for public inspection. 13 June 2005 The Board of Directors Bank of Communications Co., Ltd. No.188 Yin Cheng Zhong Road Pudong New District Shanghai Municipality The People s Republic of China Dear Sirs, In accordance with your instructions to value the in which Bank of Communications Co., Ltd. (the Company ) and its subsidiaries (hereinafter together referred to as the Group ) have interests, we confirm that we have carried out inspections, made relevant enquiries and searches and obtained such further information as we consider necessary for the purpose of providing you with our opinion of the capital values of the property interests as at (the date of valuation ). We have categorized the property interests held by the Group into 30 sub-groups according to their location. The property interests of each sub-group are a province, an autonomous region or a direct administered municipality in the PRC, or in Hong Kong and overseas countries. Our valuations of the property interests represent the market value which we would define as intended to mean the estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm s-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently, and without compulsion. We have valued the property interests in Groups I, II and III by the direct comparison approach assuming sale of the property interests in their existing state with the benefit of immediate vacant possession and by making reference to comparable sale transactions as available in the relevant market. With regard to the property interests in Group I, which comprise currently under construction, we have assumed that they will be developed and completed in accordance with the Company s latest development proposal provided to us. In arriving at our opinion of value, we have taken into account the construction costs and professional fees relevant to the stage of construction as at the valuation date and the remainder of the costs and fees to be expended to complete the developments. V-1

2 We have attributed no commercial value to the property interests in Groups IV and V, which are leased by the Group, due either to the short-term nature of the leases or the prohibition against assignment or sub-letting or otherwise due to the lack of substantial profit rents. The Group held 1,633 with an aggregate gross floor area of 2,407,744 sq.m. in the PRC, of which 1,147 are commercial, 385 are residential and 101 are ancillary. Among them, 4 are located on lands which are leased from various independent third parties by the Group. The rest of the owned are located on either granted land, administrative allocated land, or collectively-owned land. The Group held 15 which are under construction with an aggregate gross floor area of 127,966 sq.m. upon completion in the PRC. The Group held 44 in Hong Kong and overseas countries with an aggregate gross floor area of 61,950 sq.m.. In addition to the above, the Group has entered into Sale and Purchase Agreements with various real estate developers in respect of acquiring 71 commercial with an aggregate gross floor area of 61,706 sq.m. Owing to the fact that some of them are still under construction and not all the required payments have been fully paid as at the date of valuation, the have not been assigned to the Group and thus the title of the is not vested in the Group. Therefore we have not attributed any commercial value to these. The Group leases 2,334 in the PRC with an aggregate gross floor area of 732,369 sq.m. and 25 in Hong Kong and overseas countries with an aggregate gross floor area of 2,630 sq.m. from various independent third parties. For the 1,147 commercial held by the Group in the PRC, according to the opinion given by the Company s PRC legal adviser, the Group has obtained Land Rights Certificates ( LURCs ) or Leased Land Rights, Building Ownership Certificates ( BOCs ) or Real Estate Title Certificates ( RETCs ) for 913 of them representing a total gross floor area of 1,865,744 sq.m., which are legally owned by the Group and can be transferred, sublet or mortgaged freely by the Group. For the remaining 234 commercial with a total gross floor area of 248,000 sq.m., the Group has not obtained all the valid title certificates. For the 486 residential and other ancillary held by the Group in the PRC, according to the opinion given by the Company s PRC legal adviser, the Group has obtained LURCs, BOCs or RETCs for 371 of them representing a total gross floor area of 195,941 sq.m., which are legally owned by the Group and can be transferred, sublet or mortgaged freely by the Group. For the remaining 115 residential and other ancillary representing a total gross floor area of 98,058 sq.m., the Group has not obtained all the valid title certificates. For the 15 under construction held by the Group in the PRC, according to the opinion given by the Company s PRC legal adviser, the Group has obtained LURCs and/or the relevant construction permits for 9 of them with a total gross floor area of 115,116 sq.m. upon completion and they are legally in compliance with the relevant law and regulations. For the remaining 6 with a total gross floor area of 12,850 sq.m. upon completion, the Group has not obtained the LURCs and/or the relevant construction permits. Among the 1,633, the Group has obtained the right to use or occupy 98 by way of administrative allocation. For the located on allocated land, the Company has undertaken to go through land granting procedure within 1 year after the Listing. According to the Company s PRC legal opinion, the Group will have the right to occupy, use, transfer, sublet or mortgage the land use rights of such upon obtaining the granted LURCs. For all the above that the LURCs, BOCs and/or RETCs are pending, the legality cannot be fully ascertained. For the leased in the PRC, according to the opinion given by the Company s PRC legal advisor, the relevant lessors or landlords have provided either the BOCs or RETCs for 1,287 V-2

3 representing a total gross floor area of 442,830 sq.m. For the remaining 1,047 leased, the Group has not been provided with the relevant BOCs, RETCs, or property owner s consent to sublease. Among them, the lessors of 705 with a total floor area of 192,095 sq.m. have provided the confirmation letters which undertake to assume all the loss of the Group arising from any defect of their legal rights to lease the. Our valuations have been made on the assumption that the seller sells the property interests in the market without the benefit of a deferred term contract, leaseback, joint venture, management agreement or any similar arrangement, which could serve to affect the values of the property interests. No allowance has been made in our report for any charges, mortgages or amounts owing on any of the property interests valued nor for any expenses or taxation which may be incurred in effecting a sale. Unless otherwise stated, it is assumed that the are free from encumbrances, restrictions and outgoings of an onerous nature, which could affect their values. In valuing those property interests of the Group in Hong Kong held under the Government Leases expiring before 30 th June 1997, we have taken account of the stipulations contained in Annex III of the Joint Declaration of the Government of the United Kingdom and the Government of the People s Republic of China on the question of Hong Kong and the New Territories Leases (Extension) Ordinance 1988 that such leases have been extended without premium until 30 th June, 2047 and that a rent of three per cent of the then rateable value is charged per annum from the date of extension. In valuing the property interests, we have complied with all the requirements contained in Chapter 5 and Practice Note 12 to the Rules Governing the Listing of Securities issued by The Stock Exchange of Hong Kong Limited, except for those in respect of which a waiver has been applied in respect of Rule 5.06(1) and paragraph 5(2)(a) of Practice Note 12 to the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited; the RICS Appraisal and Valuation Standards (5 th Edition) published by the Royal Institution of Surveyors and effective from May 2003; and the HKIS Valuation Standards on Properties (1 st Edition 2005) published by the Hong Kong Institute of Surveyors and effective from 1 st January As the Group is in compliance with paragraph 3(b) of Practice Note 16 to the Rules Governing the Listing of Securities issued by The Stock Exchange of Hong Kong Limited, the Group has obtained a waiver to exclude the full details of the individual leased from the valuation certificates in our valuation report in this prospectus. A summary of all these interests in covered by this exemption is included in the Summary of Values and the Certificate for Leased Properties. We have relied to a very considerable extent on the information given by the Group and have accepted advice given to us on such matters as tenure, planning approvals, statutory notices, easements, particulars of, lettings, and all other relevant matters. We have been, in some instances, provided by the Group with extracts of the title documents relating to the in the PRC and have caused searches to be made at the Hong Kong and overseas Land Registries in respect of Hong Kong and overseas. Where possible, we have searched the original documents to verify the existing titles to the property interests in the PRC and any material encumbrances that might be attached to the or any lease amendments which may not appear on the copies handed to us. We have relied considerably on the advice given by the Company s PRC legal adviser King and Wood, PRC Lawyers, concerning the validity of the Group s titles to the property interests. We have not carried out detailed site measurements to verify the correctness of the site areas in respect of the but have assumed that the site areas shown on the documents and official site plans handed to us are correct. All documents and contracts have been used as reference only and all dimensions, measurements and areas are approximations. No on-site measurement has been taken. V-3

4 We have inspected the exterior and, where possible, the interior of the. However, no structural survey has been made, but in the course of our inspection, we did not note any serious defects. We are not, however, able to report whether the are free of rot, infestation or any other structural defects. No tests were carried out on any of the services. We have had no reason to doubt the truth and accuracy of the information provided to us by the Group. We have also sought confirmation from the Group that no material factors have been omitted from the information supplied. We consider that we have been provided with sufficient information to reach an informed view, and we have no reason to suspect that any material information has been withheld. Unless otherwise stated, all monetary figures stated in this report are in Renminbi (). In valuing property interests in Group II, we have adopted exchange rates of US$1 to , S$1 to , HK$1 to and Yen100 to , which were prevailing as at the date of valuation. Our valuations are summarized below and the valuation certificates are attached. Yours faithfully, for and on behalf of Sallmanns (Far East) Limited Paul L. Brown B.Sc. FRICS FHKIS Director Note: Paul L. Brown is a Chartered Surveyor who has 22 years experience in the valuation of in the PRC and 25 years of property valuation experience in Hong Kong, the United Kingdom and the Asia-Pacific region. V-4

5 SUMMARY OF VALUES GROUP I PROPERTY INTERESTS HELD BY THE GROUP IN THE PRC No. 1. Various Anhui Province 2. Various Beijing Municipality 3. Various Chongqing Municipality 4. Various Fujian Province 5. Various Gansu Province 6. Various Guangxi Zhuang Autonomous Region 7. Various Guangdong Province 8. Various Guizhou Province 9. Various Hainan Province 10. Various Hebei Province Capital Value state as at 519,697,000 1,287,463, ,040, ,626, ,751, ,396,000 1,084,214, ,115, ,502, ,765,000 V-5

6 No. 11. Various Henan Province 12. Various Heilongjiang Province 13. Various Hubei Province 14. Various Hunan Province 15. Various Jilin Province 16. Various Jiangsu Province 17. Various Jiangxi Province 18. Various Liaoning Province 19. No.24 Gangtie Da Jie Qingshan District Baotou City Inner Mongolia Autonomous Region 20. Various Shandong Province 21. Various Shannxi Province Capital Value state as at 187,582, ,168, ,323, ,721, ,451,000 2,328,941, ,777,000 1,014,605,000 42,468, ,082, ,695,000 V-6

7 No. 22. Various Shanxi Province 23. Various Shanghai Municipality 24. Various Sichuan Province 25. Various Tianjin Municipality 26. Various Xinjiang Uygur Autonomous Region 27. Various Yunnan Province 28. Various Zhejiang Province 29. Head offices Shanghai Municipality, Beijing Municipality and Qinhuangdao City of Hebei Province Capital Value state as at 31,712,000 1,974,066, ,481, ,969, ,455, ,244,000 1,613,199,000 2,336,092,000 Sub-total: 17,556,600,000 GROUP II PROPERTY INTERESTS HELD BY THE GROUP IN HONG KONG AND OVERSEAS COUNTRIES No. 30. Various Hong Kong, Singapore, USA and Japan Capital Value state as at 2,877,327,000 Sub-total: 2,877,327,000 V-7

8 GROUP III PROPERTY INTERESTS CONTRACTED TO BE ACQUIRED BY THE GROUP IN THE PRC No. 31. Various located in Sub-total: Capital Value state as at No Commercial Value Nil GROUP IV PROPERTY INTERESTS RENTED AND OCCUPIED BY THE GROUP IN THE PRC No. 32. Various located in Sub-total: Capital Value state as at No Commercial Value Nil GROUP V PROPERTY INTERESTS RENTED AND OCCUPIED BY THE GROUP IN HONG KONG AND OVERSEAS COUNTRIES No. 33. Various located in Hong Kong, Singapore, USA and Japan Sub-total: Capital Value state as at No Commercial Value Grand Total: 20,433,927,000 Nil V-8

9 GROUP I PROPERTY INTERESTS HELD BY THE GROUP IN THE PRC 1. Various Anhui Province The comprise 48 commercial buildings and units, 4 residential units and 2 ancillary buildings and units mainly completed between 1989 and The have a total gross floor area of 78,878.3 sq.m. and the approximate floor areas of the for Commercial 77, Residential 1, Ancillary Total 78, The are commercial, residential and ancillary purposes, except for 2 items of the with a total gross floor area of sq.m. which are currently vacant and 4 items with a total gross floor area of 5, sq.m. which are subject to 4 lease agreements as stated in note ,697, According to 51 BOCs and 43 LURCs, 48 items of the representing a total gross floor area of 77, sq.m. have obtained both the BOCs and LURCs. According to the opinion given by the Company s PRC legal adviser, the Group has obtained both the Building Ownership Certificates and Land Rights Certificates for the 48 items of the. The title to such is vested in the Group which is entitled to freely transfer, sublet or mortgage such. 2. For the remaining 6 items of the with a total gross floor area of 1, sq.m., which comprise 2 commercial with a total gross floor area of sq.m., 2 residential with a total gross floor area of sq.m. and 2 ancillary residential with a gross floor area of 59.1 sq.m., we have not been provided with the LURCs and/or BOCs. As the Group does not possess all the relevant title certificates to such, the Group is not entitled to freely transfer or mortgage such and therefore we have attributed no commercial value to them. For reference purposes, we are of the opinion that the value of these is in the amount of 5,831,000, provided that the relevant title certificates have been obtained by the Group and the Group is entitled to freely transfer or mortgage such. According to the opinion given by the Company s PRC legal adviser, 5 of such have obtained the BOCs only and 1 has obtained the LURC only. Among the 5 items with the BOCs only, 2 are located on administrative allocated land. 3. According to 4 lease agreements, 4 items of the with a total gross floor area of 5, sq.m. are leased to various independent third parties for various terms at a total annual rental of 345,000 and expiring on the latest date of 30 January As advised by the Company, the were acquired by the Group at a total consideration of 476,852,000. V-9

10 2. Various Beijing Municipality 31 March 2005 The comprise 26 commercial buildings and units, and a residential unit mainly completed between 1989 and The have a total gross floor area of 86, sq.m. and the approximate floor areas of the for Commercial 85, Residential Total 86, The are commercial and residential purposes except for 6 items with a total gross floor area of 11, sq.m. which are subject to 6 lease agreements as stated in note 3. 1,287,463, According to 21 BOCs and 20 LURCs, 20 items of the representing a total gross floor area of 64, sq.m. have obtained both the BOCs and LURCs. According to the opinion given by the Company s PRC legal adviser, the Group has obtained both the Building Ownership Certificates and Land Rights Certificates for the 20 items of the. The title to such is vested in the Group which is entitled to freely transfer, sublet or mortgage such. 2. For the remaining 7 items of the with a total gross floor area of 21, sq.m., which comprise 6 commercial with a total gross floor area of 20, sq.m., and one residential property with a total gross floor area of sq.m, we have not been provided with the LURCs and/or BOCs. As the Group does not possess all the relevant title certificates to such, the Group is not entitled to freely transfer or mortgage such and therefore we have attributed no commercial value to them. For reference purposes, we are of the opinion that the value of these is in the amount of 464,228,000, provided that the relevant title certificates have been obtained by the Group and the Group is entitled to freely transfer or mortgage such. According to the opinion given by the Company s PRC legal adviser, 4 of such have obtained the BOCs only, one has obtained the LURC only and 2 do not have any valid title certificates. Among them, 1 is located on administrative allocated land. 3. According to 6 lease agreements, 6 items of the with a total gross floor area of 11, sq.m. are leased to various independent third parties for various terms at a total annual rental of 23,237,875 and expiring on the latest date of 17 August As advised by the Company, the were acquired by the Group at a total consideration of 1,559,036,000. V-10

11 3. Various Chongqing Municipality The comprise 29 commercial buildings and units, 2 residential units and 2 ancillary buildings and units mainly completed between 1987 and The have a total gross floor area of 45, sq.m. and the approximate floor areas of the for Commercial 43, Residential 1, Ancillary Total 45, The are commercial, residential and ancillary purposes except for 2 items with a gross floor area of 1,062 sq.m. which are subject to 2 lease agreements as stated in note ,040, According to 31 BOCs and 31 LURCs, 26 items of the representing a total gross floor area of 37, sq.m. have obtained both the BOCs and LURCs. According to the opinion given by the Company s PRC legal adviser, the Group has obtained both the Building Ownership Certificates and Land Rights Certificates for the 26 items of the. The title to such is vested in the Group which is entitled to freely transfer, sublet or mortgage such. 2. For the remaining 7 items of the with a total gross floor area of 7, sq.m., which comprise 5 commercial with a total gross floor area of 6, sq.m., and 2 residential with a total gross floor area of 1, sq.m, we have not been provided with the LURCs and/or BOCs. As the Group does not possess all the relevant title certificates to such, the Group is not entitled to freely transfer or mortgage such and therefore we have attributed no commercial value to them. For reference purposes, we are of the opinion that the value of these is in the amount of 105,948,000, provided that the relevant title certificates have been obtained by the Group and the Group is entitled to freely transfer or mortgage such. According to the opinion given by the Company s PRC legal adviser, 5 of such have obtained the BOCs only and 2 do not have any valid title certificates. Among the 5 with BOCs only, 3 are located on administrative allocated land. 3. According to 2 lease agreements, 2 items of the with a total gross floor area of 1,062 sq.m. are leased to independent third parties for various terms at a total annual rental of 148,720 and expiring on the latest date of 25 October, As advised by the Company, the were acquired by the Group at a total consideration of 613,525,000. V-11

12 4. Various Fujian Province The comprise 14 commercial buildings and units, and 8 residential units and 3 ancillary buildings mainly completed between 1985 and The have a total gross floor area of 33, sq.m. and the approximate floor areas of the for each use are shown as follows: Commercial 31, Residential 1, Ancillary Total 33, The are currently occupied by the Group for commercial, residential and ancillary purposes except for an item with a gross floor area of 119 sq.m. which is subject to a lease agreement as stated in note ,626, According to 9 BOCs, 9 LURCs and 43 RETCs, 23 items of the representing a total gross floor area of 32, sq.m. have obtained both the BOCs and LURCs or the RETCs. According to the opinion given by the Company s PRC legal adviser, the Group has obtained both the Building Ownership Certificates and Land Rights Certificates or the Real Estate Title Certificates for the 23 items of the. The title to such is vested in the Group which is entitled to freely transfer, sublet or mortgage such. 2. For the remaining 2 items of the with a total gross floor area of sq.m., which comprise one commercial property with a gross floor area of sq.m. and one residential property with a gross floor area of sq.m., we have not been provided with the LURC, BOC and RETC. As the Group does not possess all the relevant title certificates to such, the Group is not entitled to freely transfer or mortgage such and therefore we have attributed no commercial value to them. For reference purpose, we are of the opinion that the value of these is in the amount of 12,059,000, provided that the relevant title certificates have been obtained by the Group and the Group is entitled to freely transfer or mortgage such. According to the opinion given by the Company s PRC legal adviser, the Group has not obtained any title certificates for such and one of them is located on administrative land. 3. According to a lease agreement, a unit of the with a gross floor area of 119 sq.m. is leased to an independent third party for a term of 5 years expiring on 31 July 2009 at an annual rental of 42, As advised by the Company, the were acquired by the Group at a total consideration of 298,022,000. V-12

13 5. Various Gansu Province The comprise 10 commercial buildings and units mainly completed between 1989 and The have a total gross floor area of 18, sq.m. The also comprise a building which was under construction as at the date of valuation (the CIP ). Up to the valuation date, a sum of 72,638,311 has been incurred. The total gross floor area of the building will be 13,097 sq.m. upon completion and it is scheduled to be completed in The are commercial purpose except for the CIP. 142,751, According to 8 BOCs and 7 LURCs, 8 items of the representing a total gross floor area of 13,695.3 sq.m. have obtained both the BOCs and LURCs. According to the opinion given by the Company s PRC legal adviser, the Group has obtained both the Building Ownership Certificates and Land Rights Certificates for the 8 items of the. The title to such is vested in the Group which is entitled to freely transfer, sublet or mortgage such. 2. For the remaining 2 commercial with a total gross floor area of 4, sq.m., we have not been provided with both the LURCs and BOCs. As the Group does not possess all the relevant title certificates to such, the Group is not entitled to freely transfer or mortgage such and therefore we have attributed no commercial value to them. For reference purpose, we are of the opinion that the value of these is in the amount of 23,179,000, provided that the relevant title certificates have been obtained by the Group and the Group is entitled to freely transfer or mortgage such. According to the opinion given by the Company s PRC legal adviser, the Group has not obtained any valid title certificates for these. 3. For the CIP, we have been provided with the relevant construction permits issued by the government. The Company s PRC legal adviser has confirmed that the relevant construction permits have been obtained by the Group and the construction project is legally in compliance with the relevant rules and regulations. 4. As advised by the Company, the were acquired by the Group at a total consideration of 91,402,000. V-13

14 6. Various Guangxi Zhuang Autonomous Region The comprise 31 commercial buildings and units, 10 residential units and an ancillary building mainly completed between 1935 and The have a total gross floor area of 51, sq.m. and the approximate floor areas of the for Commercial 46, Residential 4, Ancillary Total 51, The are commercial, residential and ancillary purposes except for 13 items of the with a total gross floor area of 3, sq.m. which are subject to 13 lease agreements as stated in note ,396, According to 52 BOCs and 37 LURCs, 41 items of the representing a total gross floor area of 50,790.4 sq.m. have obtained both the BOCs and LURCs. According to the opinion given by the Company s PRC legal adviser, the Group has obtained both the Building Ownership Certificates and Land Rights Certificates for the 41 items of the. The title to such is vested in the Group which is entitled to freely transfer, sublet or mortgage such. 2. For the remaining one commercial property with a gross floor area of sq.m., we have not been provided with the LURC. As the Group does not possess all the relevant title certificates to such property and the Group is therefore not entitled to freely transfer or mortgage such property, we have attributed no commercial value to it. For reference purpose, we are of the opinion that the value of the property is in the amount of 2,071,000, provided that the LURC has been obtained by the Group and the Group is entitled to freely transfer or mortgage such property. According to the opinion given by the Company s PRC legal adviser, such property has obtained the BOC only. 3. According to 13 lease agreements, 13 items of the with a total gross floor area of 3, sq.m. are leased to various independent third parties for various terms at a total annual rental of 834,110 and expiring on the latest date of 11 July As advised by the Company, the were acquired by the Group at a total consideration of 266,261,000. V-14

15 7. Various Guangdong Province The comprise 181 commercial buildings and units, 135 residential units and 2 ancillary buildings and units mainly completed between 1984 and The have a total gross floor area of 139, sq.m. and the approximate floor areas of the for Commercial 113, Residential 25, Ancillary Total 139, The also comprise 2 items which were under construction as at the date of valuation (the CIP Properties). Up to the valuation date, the 2 were vacant and as informed by the Company, detailed construction plan has not been finalized. The are currently occupied by the Group for commercial, residential and ancillary purposes except for 9 items of the with a total gross floor area of 5, sq.m. that are currently vacant, the CIP Properties and 20 items with a total gross floor area of 3, sq.m. which are subject to 20 lease agreements as stated in note March ,084,214, According to 18 BOCs, 28 LURCs and 314 RETCs, 226 items of the representing a total gross floor area of 100,949.6 sq.m. have obtained both the BOCs and LURCs or RETCs. According to the opinion given by the Company s PRC legal adviser, the Group has obtained both the Building Ownership Certificates and Land Rights Certificates or the Real Estate Title Certificates for the 226 items of the. The title to such is vested in the Group which is entitled to freely transfer, sublet or mortgage such. 2. For the remaining 92 items of the with a total gross floor area of 38, sq.m., which comprise 66 commercial with a total gross floor area of 25, sq.m., and 26 residential with a total gross floor area of 12, sq.m, we have not been provided with all the relevant title certificates. As the Group does not possess all the relevant title certificates to such and the Group is therefore not entitled to freely transfer or mortgage such, we have attributed no commercial value to them. For reference purpose, we are of the opinion that the value of these is in the amount of 281,612,000, provided that the relevant title certificates have been obtained by the Group and the Group is entitled to freely transfer or mortgage such. According to the opinion given by the Company s PRC legal adviser, 49 of such have obtained the BOCs only, and 43 do not have any valid title certificates. Among them, 45 are located on administrative allocated land. 3. According to 20 lease agreements, 20 items of the with a total gross floor area of 3, sq.m. are leased to various independent third parties for various terms at a total annual rental of 535,797 and expiring on the latest date of 30 April The Group has obtained the BOCs for 16 of the above. For the remaining 4 items with a total floor area of 1, sq.m., we have not been provided with the BOCs. 4. For the CIP Properties, we have not been provided with the LURCs and the relevant construction permits issued by the government. According to the opinion given by the Company s PRC legal adviser, the LURCs and the relevant permits have not been obtained by the Group, the legality of the CIP Properties cannot be ascertained. As such, we have attributed no commercial value to the CIP Properties. 5. As advised by the Company, the were acquired by the Group at a total consideration of 1,406,882,000. V-15

16 8. Various Guizhou Province The comprise 25 commercial buildings and units, and 3 residential units mainly completed between 1989 and The have a total gross floor area of 19, sq.m. and the approximate floor areas of the for Commercial 18, Residential 1, Total 19, The are commercial and residential purposes except for 2 items with a total gross floor area of sq.m. which are subject to 2 lease agreements as stated in note ,115, According to 30 BOCs and 25 LURCs, 24 items of the representing a total gross floor area of 18, sq.m. have obtained both the BOCs and LURCs. According to the opinion given by the Company s PRC legal adviser, the Group has obtained both the Building Ownership Certificates and Land Rights Certificates for the 24 items of the. The title to such is vested in the Group which is entitled to freely transfer, sublet or mortgage such. 2. For the remaining 4 commercial with a total gross floor area of 1, sq.m., we have not been provided with the LURCs and/or BOCs. As the Group does not possess all the relevant title certificates to such, the Group is not entitled to freely transfer or mortgage such and therefore we have attributed no commercial value to them. For reference purpose, we are of the opinion that the value of these is in the amount of 15,239,000, provided that the relevant title certificates have been obtained by the Group and the Group is entitled to freely transfer or mortgage such. According to the opinion given by the Company s PRC legal adviser, 3 of such have obtained the BOCs only and 1 does not have any valid title certificates. Among them, 1 is located on administrative allocated land. 3. According to a land use rights lease agreement, a parcel of land with an area of sq.m., on which an office building with a gross floor area of sq.m. is erected, is leased from an independent third party for an unspecified term at an annual rental of 5,000. According to the opinion given by the Company s PRC legal adviser, the lease agreement has been properly registered and is legally binding and enforceable. 4. According to 2 lease agreements, 2 items of the with a total gross floor area of sq.m. are leased to various independent third parties for various terms at a total annual rental of 37,200 and expiring on the latest date of 5 March As advised by the Company, the were acquired by the Group at a total consideration of 129,689,000. V-16

17 9. Various Hainan Province The comprise 19 commercial buildings and units, and 3 residential buildings mainly completed between 1994 and The have a total gross floor area of 68, sq.m. and the approximate floor areas of the for Commercial 24, Residential 44,735.1 Total 68, The also comprise a property which was under construction on a site with an area of 8, sq.m. (the CIP ). As informed by the Company, the construction has stopped and there is no plan when will the project be restarted. The are commercial and residential purposes except for the CIP and 3 items of the with a total gross floor area of 3, sq.m. which are subject to 3 lease agreements as stated in note ,502, According to 20 BOCs, 8 LURCs and 1 RETC, 21 items of the representing a total gross floor area of 38, sq.m. have obtained both the BOCs and LURCs or RETC. According to the opinion given by the Company s PRC legal adviser, the Group has obtained both the Building Ownership Certificates and Land Rights Certificates or Real Estate Title Certificate for the 21 items of the. The title to such is vested in the Group which is entitled to freely transfer, sublet or mortgage such. 2. For the remaining one residential property with a gross floor area of 30,205 sq.m., we have not been provided with the LURC and BOC. As the Group does not possess all the relevant title certificates to such property, the Group is not entitled to freely transfer or mortgage such property and therefore we have attributed no commercial value to it. For reference purpose, we are of the opinion that the value of this property is in the amount of 61,990,000, provided that the relevant title certificates have been obtained by the Group and the Group is entitled to freely transfer or mortgage such property. According to the opinion given by the Company s PRC legal adviser, the Group has not obtained any title certificates for such property. 3. According to 3 lease agreements, 3 items of the with a total gross floor area of 3, sq.m. are leased to various independent third parties for various terms at a total annual rental of 412,968 and expiring on the latest date of 30 September For the CIP, as advised by the Company, the property was constructed jointly by the Company and an independent third party. Owing to the reason arising from the cooperative party, the construction has stopped. We have been provided with the LURC registered under the name of the Company. According to the opinion given by the Company s PRC legal adviser, as the relevant permits have not been provided, the legality of the CIP cannot be ascertained. As such, we have attributed no commercial value to the CIP. 5. As advised by the Company, the were acquired by the Group at a total consideration of 200,354,000. V-17

18 10. Various Hebei Province The comprise 23 commercial buildings and units, and 6 ancillary buildings and units mainly completed between 1984 and The have a total gross floor area of 72, sq.m. and the approximate floor areas of the for Commercial 71, Ancillary Total 72, The are commercial and ancillary purposes. 375,765, According to 22 BOCs and 17 LURCs, 27 items of the representing a total gross floor area of 70, sq.m. have obtained both the BOCs and LURCs. According to the opinion given by the Company s PRC legal adviser, the Group has obtained both the Building Ownership Certificates and Land Rights Certificates for the 27 items of the. The title to such is vested in the Group which is entitled to freely transfer, sublet or mortgage such. 2. For the remaining 2 commercial with a total gross floor area of 2, sq.m., we have been provided with the BOCs only. As the Group does not possess all the relevant title certificates to such, the Group is not entitled to freely transfer or mortgage such and therefore we have attributed no commercial value to them. For reference purpose, we are of the opinion that the value of these is in the amount of 14,648,000, provided that the relevant title certificates have been obtained by the Group and the Group is entitled to freely transfer or mortgage such. According to the opinion given by the Company s PRC legal adviser, these have obtained the BOCs only. 3. As advised by the Company, the were acquired by the Group at a total consideration of 338,347,000. V-18

19 11. Various Henan Province The comprise 9 commercial buildings and units, and an ancillary building mainly completed between 1993 and The have a total gross floor area of 45, sq.m. and the approximate floor areas of the for Commercial 43, Ancillary 1, The are commercial and ancillary purposes. 187,582,000 Total 45, According to 9 BOCs and 11 LURCs, 8 items of the representing a total gross floor area of 43, sq.m. have obtained both the BOCs and LURCs. According to the opinion given by the Company s PRC legal adviser, the Group has obtained both the Building Ownership Certificates and Land Rights Certificates for the 8 items of the. The title to such is vested in the Group which is entitled to freely transfer, sublet or mortgage such. 2. For the remaining 2 items of the with a total gross floor area of 2,167.9 sq.m., which comprise one commercial property with a gross floor area of sq.m., and one ancillary property with a gross floor area of 1, sq.m., we have been provided with the BOCs only. As the Group does not possess all the relevant title certificates to such, the Group is not entitled to freely transfer or mortgage such and therefore we have attributed no commercial value to them. For reference purpose, we are of the opinion that the value of these is in the amount of 14,548,000, provided that the relevant title certificates have been obtained by the Group and the Group is entitled to freely transfer or mortgage such. According to the opinion given by the Company s PRC legal adviser, these have obtained the BOCs only. 3. As advised by the Company, the were acquired by the Group at a total consideration of 227,162,000. V-19

20 12. Various Heilongjiang Province The comprise 38 commercial buildings and units, a residential unit and 24 ancillary buildings and units mainly completed between 1989 and The have a total gross floor area of 103, sq.m. and the approximate floor areas of the for Commercial 93, Residential 326 Ancillary 9,746.7 Total 103, The are commercial, residential and ancillary purposes except for 11 items of the with a total gross floor area of 29, sq.m. that are currently vacant and an item with a gross floor area of 1,244 sq.m. which is subject to a lease agreement as stated in note ,168, According to 59 BOCs and 43 LURCs, 58 items of the representing a total gross floor area of 100, sq.m. have obtained both the BOCs and LURCs. According to the opinion given by the Company s PRC legal adviser, the Group has obtained both the Building Ownership Certificates and Land Rights Certificates for the 58 items of the. The title to such is vested in the Group which is entitled to freely transfer, sublet or mortgage such. 2. For the remaining 5 items of the with a total gross floor area of 2, sq.m., which comprise 2 commercial with a total gross floor area of 1, sq.m., one residential property with a gross floor area of 326 sq.m and 2 ancillary residential with a total gross floor area of 306 sq.m., we have not been provided with the LURCs and/or BOCs. As the Group does not possess all the relevant title certificates to such, the Group is not entitled to freely transfer or mortgage such and therefore we have attributed no commercial value to them. For reference purpose, we are of the opinion that the value of these is in the amount of 6,645,000, provided that the relevant title certificates have been obtained by the Group and the Group is entitled to freely transfer or mortgage such. According to the opinion given by the Company s PRC legal adviser, 2 of such have obtained the BOCs only, 2 have obtained the LURCs only and the remaining 1 does not have any valid title certificates. 3. According to a lease agreement, an item of the with a gross floor area of 1,244 sq.m. is leased to an independent third party for a term of 3 years at a total annual rental of 300,000 for a term expiring on 26 May As advised by the Company, the were acquired by the Group at a total consideration of 338,924,000. V-20

21 13. Various Hubei Province The comprise 52 commercial buildings and units, 13 residential units, and 8 ancillary units and buildings mainly completed between 1985 and The have a total gross floor area of 90, sq.m. and the approximate floor areas of the for Commercial 81, Residential 1, Ancillary 7, Total 90, The are commercial, residential and ancillary purposes except for 2 items with a total gross floor area of 1,212.7 sq.m. which are subject to 2 lease agreements as stated in note ,323, According to 90 BOCs and 88 LURCs, 72 items of the representing a total gross floor area of 90, sq.m. have obtained both the BOCs and LURCs. According to the opinion given by the Company s PRC legal adviser, the Group has obtained both the Building Ownership Certificates and Land Rights Certificates for the 72 items of the. The title to such is vested in the Group which is entitled to freely transfer, sublet or mortgage such. 2. For the remaining 1 item with a gross floor area of sq.m., we have been provided with the BOC only. As the Group does not possess all the relevant title certificates to such property, the Group is not entitled to freely transfer or mortgage such property and therefore we have attributed no commercial value to it. For reference purpose, we are of the opinion that the value of this property is in the amount of 1,970,000, provided that the relevant title certificates have been obtained by the Group and the Group is entitled to freely transfer or mortgage such property. According to the opinion given by the Company s PRC legal adviser, the property has obtained the BOC only and is located on administrative land. 3. According to 2 lease agreements, 2 items of the with a total gross floor area of 1,212.7 sq.m. are leased to various independent third parties for various terms at a total annual rental of 328,000 and expiring on the latest date of 1 April As advised by the Company, the were acquired by the Group at a total consideration of 483,065,000. V-21

22 14. Various Hunan Province The comprise 10 commercial buildings and units mainly completed between 1993 and The have a total gross floor area of 38, sq.m. The are commercial purpose, except for 28 units of an office building with a total gross floor area of 5, sq.m. which are subject to 28 lease agreements as stated in note ,721, According to 8 BOCs and 8 LURCs, 7 items of the representing a total gross floor area of 32, sq.m. have obtained both the BOCs and LURCs. According to the opinion given by the Company s PRC legal adviser, the Group has obtained both the Building Ownership Certificates and Land Rights Certificates for the 7 items of the. The title to such is vested in the Group which is entitled to freely transfer, sublet or mortgage such. 2. For the remaining 3 commercial with a total gross floor area of 5, sq.m., we have not been provided with the LURCs and/or BOCs. As the Group does not possess all the relevant title certificates to such, the Group is not entitled to freely transfer or mortgage such and therefore we have attributed no commercial value to them. For reference purpose, we are of the opinion that the value of these is in the amount of 9,893,000, provided that the relevant title certificates have been obtained by the Group and the Group is entitled to freely transfer or mortgage such. According to the opinion given by the Company s PRC legal adviser, 2 of such have obtained the BOCs only and the remaining one does not have any valid title certificates. Of the 2 with BOCs only, 1 is located on administrative allocated land. 3. According to 28 lease agreements, 28 items of the with a total gross floor area of 5, sq.m. are leased to various independent third parties for various terms at a total annual rental of 575,100 and expiring on the latest date of 30 April As advised by the Company, the were acquired by the Group at a total consideration of 174,910,000. V-22

23 15. Various Jilin Province The comprise 45 commercial buildings and units, 7 residential units and 5 ancillary buildings mainly completed between 1989 and The have a total gross floor area of 80, sq.m. and the approximate floor areas of the for Commercial 72, Residential 5, Ancillary 2, Total 80, The also comprise a building which was under construction as at the date of valuation (the CIP ). Up to the valuation date, a sum of 51,000,000 has been incurred. The total gross floor area of the building will be 9, sq.m. upon completion and it is scheduled to be completed in The are commercial, residential and ancillary purposes except for the CIP, 4 items of the with a total gross floor area of 7, sq.m. that are currently vacant, and 7 items with a total gross floor area of 2, sq.m. which are subject to 7 lease agreements as stated in note ,451, According to 44 BOCs and 43 LURCs, 45 items of the representing a total gross floor area of 64, sq.m. have obtained both the BOCs and LURCs. According to the opinion given by the Company s PRC legal adviser, the Group has obtained both the Building Ownership Certificates and Land Rights Certificates for the 45 items of the. The title to such is vested in the Group which is entitled to freely transfer, sublet or mortgage such. 2. For the remaining 12 items of the with a total gross floor area of 15,735.7 sq.m., which comprise 8 commercial with a total gross floor area of 10, sq.m., 3 residential with a total gross floor area of 4, sq.m. and one ancillary property with a gross floor area of 250 sq.m., we have not been provided with the LURCs and/or BOCs. As the Group does not possess all the relevant title certificates to such, the Group is not entitled to freely transfer or mortgage such and therefore we have attributed no commercial value to them. For reference purpose, we are of the opinion that the value of these is in the amount of 38,844,000, provided that the relevant title certificates have been obtained by the Group and the Group is entitled to freely transfer or mortgage such. According to the opinion given by the Company s PRC legal adviser, 7 of such have obtained the BOCs only and 5 do not have any valid title certificates. 3. According to 7 lease agreements, 7 items of the with a total gross floor area of 2, sq.m. are leased to various independent third parties for various terms at a total annual rental of 376,400 and expiring on the latest date of 17 July For the CIP, we have been provided with the relevant construction permits issued by the government. The Company s PRC legal adviser has confirmed that the relevant construction permits have been obtained by the Group and the construction project is legally in compliance with the relevant rules and regulations. 5. As advised by the Company, the were acquired by the Group at a total consideration of 394,388,000. V-23

24 16. Various Jiangsu Province The comprise 169 commercial buildings and units, 49 residential units and 3 ancillary buildings and units mainly completed between 1946 and The have a total gross floor area of 331, sq.m. and the approximate floor areas of the for Commercial 304, Residential 6, Ancillary 21, Total 331, The are commercial, residential and ancillary purposes except for 3 items of the with a total gross floor area of sq.m. that are currently vacant and 40 items with a total gross floor area of 15, sq.m. which are subject to 40 lease agreements as stated in note March ,328,941, According to 196 BOCs and 172 LURCs, 166 items of the representing a total gross floor area of 301, sq.m. have obtained both the BOCs and LURCs. According to the opinion given by the Company s PRC legal adviser, the Group has obtained both the Building Ownership Certificates and Land Rights Certificates for the 166 items of the. The title to such is vested in the Group which is entitled to freely transfer, sublet or mortgage such. 2. For the remaining 55 items of the with a total gross floor area of 30,211.8 sq.m., which comprise 33 commercial with a total gross floor area of 27, sq.m., and 22 residential with a total gross floor area of 2, sq.m., we have not been provided with the LURCs and/or BOCs. As the Group does not possess all the relevant title certificates to such, the Group is not entitled to freely transfer or mortgage such and therefore we have attributed no commercial value to them. For reference purpose, we are of the opinion that the value of these is in the amount of 164,769,000, provided that the relevant title certificates have been obtained by the Group and the Group is entitled to freely transfer or mortgage such. According to the opinion given by the Company s PRC legal adviser, 39 of such have obtained the BOCs only and 16 do not have any valid title certificates. Among the 39 with BOCs only, 21 are located on administrative allocated land. 3. According to 40 lease agreements, 40 items of the with a total gross floor area of 15, sq.m. are leased to various independent third parties for various terms at a total annual rental of 4,883,500 and expiring on the latest date of 30 November The Group has obtained the BOCs for 36 of these. For the remaining 4 items with a total floor area of 1,263.5 sq.m., we have not been provided with the BOCs. 4. As advised by the Company, the were acquired by the Group at a total consideration of 1,785,623,000. V-24