Frasers Property Announces the Placing and Subscription Agreement Sale Shares at a Price of HK$0.78 per Share

Subscription Fund of Approximately HK$700 Million For General Working Capital and The Future Expansion of the Property Development Projects

HONG KONG, Jan. 29, 2013 /PRNewswire/ -- Frasers Property (China) Limited (the Company, today, held the Annual General Meeting and proposed to change the Company Name to Gemdale Properties and Investment Corporation Limited; Hong Kong Stock code: 535), a leading provider of business and living space solutions and reliable property management services in Greater China, is pleased to announce the Company, Famous Commercial Limited (the controlling shareholder of the Company / the Vendor) and Standard Chartered Securities (Hong Kong) Limited (the Placing Agent) entered into the Placing and Subscription Agreement pursuant to which the Placing Agent has agreed to place, on a fully underwritten basis, the Sale Shares at a price of HK$0.78 per Share on behalf of the Vendor.

As for the Placing, the number of Shares to be placed is 900,000,000 existing Shares (to be sold by the Vendor), representing approximately 13.11% of the existing issued share capital of the Company and about 11.59% of the issued share capital as enlarged by the Subscription. The Placing Price is HK$0.78 per Share.

The Sale Shares will be placed by the Placing Agent to more than six independent professional, institutional and/or individual investors, including Long-term Fund, China insurance company and Asia-focused Fund. It is expected that the Placing will be completed on 31 January 2013 (or such other date as the Vendor and the Placing Agent may agree in writing). Immediately after completion of the Placing and the Subscription, the float holding by Gemdale Corporation, the Company's controlling shareholder, will decreased from 76.29% to 67.25%. The Company intends to use the estimated net proceeds of the Subscription as general working capital of the Company and for the future expansion of the property development projects.

Mr. Xu Jiajun , Executive Director and Chief Executive Officer of Gemdale Properties and Investment, said, "the Placing and the Subscription will provide an opportunity to raise further capital for the Company whilst broadening the shareholder base and the capital base of the Company. The Company consider that the terms of the Placing and the Subscription are fair and reasonable and in the best interests of the Company and the Shareholders as a whole."

In today's Annual General Meeting, the Company proposed to change the Company Names to "Gemdale Properties and Investment Corporation Limited" ("Gemdale Properties and Investment"). Gemdale Properties and Investment will act as the sole independent platform for investment, development and management of commercial properties under Gemdale Corporation, which in turn is a listed national real estate enterprise (600383.SH). Gemdale Properties and Investment will capitalize on the resources, core competitiveness offered by Gemdale Corporation, to focus on commercial real estate field, thereby establishing its core business development pattern, and to become a leading developer of exquisite commercial properties in the Chinese commercial real estate field.

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