Minmetals Land and Vanke Beijing to acquire RMB336mln lot

280,000 sq. m. land in Xianghe to be developed modern eco-community to accelerate city’s urbanization.

Minmetals Land Limited (“Minmetals Land”) announced the acquisition of six parcels of residential land at base bidding price with Beijing Vanke Company Limited (“Vanke Beijing”), its PRC partner, at a total consideration of approximately RMB 336 million (approximately HK$384 million) in an auction conducted by the Bureau of Hebei Xianghe Land Resources on 17 September 2010. The aggregate site area of these lands is approximately 280,000 square metres and the maximum gross floor area is approximately 420,000 square metres.

These land, together with the projects under the latest asset injection to be completed, will raise the Company’s land bank to approximately 4 million square metres, according to Minmetals Land report.

According to the planning of the Xianghe government, the target area is to be developed into a modern Eco-community, aiming to accelerate urbanization, improve city image and local living conditions as well as harmonize the development of Xianghe’s economy.

With the SOE background, Minmetals Land’s investment in the Xianghe Project under the “New Rural Development” will bring in stimulus to the Xianghe economy. Mr. He Jianbo, the Managing Director of Minmetals Land, said, “In addition to the 265,000 square metres of land acquired at the end of July this year, the acquisition of these 280,000 square metres of land further strengthen our investment intent in Xianghe under the “New Rural Development”. We shall follow our strategic intent to work with Vanke Beijing to combine the strength of both groups, aiming to transform Xianghe into a prosperous new town of eco-environment and modern outlook.”