22 April, 2010, Hong Kong – Fantasia Holdings Group Co., Limited (“Fantasia” or the “Company”; stock code 1777) announced that the Company entered into a framework agreement to acquire Shenzhen Gaohua Investment Limited (“Shenzhen Gaohua”), held in equal part by Shenzhen Zhongding Investment Development Limited and Shenzhen Longgang Enterprise Limited, for a total consideration of RMB936 million. Shenzhen Gaohua is in the process of acquiring the equity interests in three pieces of land in Guilin’s planned “Economic Development Zone”, to be developed for commercial and residential use. Upon completion of the proposed acquisition, Fantasia, through Shenzhen Gaohua, will be the sole owner of all three parcels, with a total land area and gross floor area of approximately 716.7 thousand square meters and 2.2 million square meters respectively.

Good value lands in Guilin

The three pieces of land cost an average of approximately RMB400 per floor square meter – a huge discount compared with the price of RMB1,300 per square meter, which was paid for a neighboring parcel marked number 201008 sold in March. Hence, returns from projects on these three parcels are very promising.

Guilin, a world-renowned tourist destination, with a rich cultural and historical heritage, is entering a stage of fast economic growth as prefectural collaborations in the greater Pearl River Delta area have gathered pace. In addition, Guilin was approved by the state as a pilot city to take part in the reforms reshaping the local tourist economy. Fantasia believes in the future of an enlivened Guilin and the huge potential for land value appreciation, given the soaring land prices in Tier I cities.

Located in Guilin’s emerging Economic Development Zone, these three pieces of land capitalize on the existing nature of the projects and their advantageous locations, and have the potential to significantly appreciate in value. Fantasia plans to build a large scale complex which will include boutique up-market residences, an urban commercial center, and several hotels, which collectively will provide Guilin residents with a unique lifestyle experience and exciting new housing options.

A vision to expand in premium tourist cities

Fantasia started entering Tier 2 and 3 cities in 2005 and has been acquiring high quality land at good value - a preemptive effort to position the company to benefit from China’s continuing urbanization beyond its Tier 1 cities, where land prices continue to spiral upwards. Upscale boutique developments targeting high-end clients, such as Daxigu in Pujiang, Sichuan province and Yunhaijian in Yixing, Jiangsu province have been extremely successful. Since the beginning of this year, Fantasia accelerated its pace of land acquisition in Tier 2 and 3 cities with a particular focus on national tourist destinations – for instance Wuxi, Dali, Suzhou and Guilin. Located in the renowned national scenic site of Tai Lake, the six pieces of land in Suzhou, with a total gross floor area of 500,000 square meters, cost an average of RMB1,700 per floor square meter – another example of a project with promising returns.

Since the Company’s successful listing on November 25, 2009, which raised HK$2,679 million, Fantasia has continued to prudently acquire land and expand its presence in each region’s key cities leveraging multiple channels including public bidding, co-development and M&As. Fantasia increased its land bank by over one million square meters within five months of listing, evidence of its capability to acquire land at a consistently low cost. This addition of land in Guilin will enrich the group’s land bank and further broaden its growth potential in the greater Pearl River Delta.