Yuexiu Property : ANNOUNCEMENT - SECONDARY PLACEMENT OF ...

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(Incorporated in Hong Kong with limited liability)

(Stock code: 00123)

ANNOUNCEMENT

SECONDARY PLACEMENT OF UNITS IN YUEXIU REIT

This is a voluntary announcement made by Yuexiu Property Company Limited (൳Ӹήପٰ΅Ϟࠢʮ̡) (the "Company").

Reference is made to the announcement of the Company dated 14 March 2017 (the "Announcement"). Unless otherwise defined, capitalised terms used in this announcement shall have the same meaning as defined in the Announcement.

As at the date of this announcement, the Company owns (directly and indirectly) an aggregate of 1,106,828,490 units ("Units") in Yuexiu Real Estate Investment Trust ("Yuexiu REIT"), representing approximately 36.72% of the total number of Units in issue.

The Board announces that on 31 December 2017, the Company, Dragon Yield Holding Limited ("Dragon Yield") and Yuexiu International Investment Limited ("YXII") entered into a placement agreement with DBS Asia Capital Limited (the "Placing Agent"), pursuant to which Dragon Yield and YXII agreed to sell, and the Placing Agent agreed subject to certain conditions to procure placees to purchase, failing which the Placing Agent will purchase, 77,000,000 Units for a purchase price of HK$4.89 per Unit (the "Proposed Placement"). To the best of the knowledge, information and belief of the directors' of the Company having made reasonable enquiries, the placees in respect of the Proposed Placement are third parties independent of the Company.

The gross proceeds from the Proposed Placement are estimated to be approximately HK$376,530,000 in total. The net proceeds from the Proposed Placement will be used for general working capital purposes.

As the Proposed Placement may or may not complete, shareholders and potential investors of the Company should exercise caution when dealing or investing in the shares of the Company.

By Order of the Board

Yuexiu Property Company Limited

Yu Tat Fung

Company Secretary

Hong Kong, 2 January 2018

As at the date of this announcement, the Board comprises:

Executive Directors:

ZHANG Zhaoxing (Chairman), ZHU Chunxiu, LIN Zhaoyuan, LI Feng and CHEN Jing

Independent Non-executive

Directors:

YU Lup Fat Joseph, LEE Ka Lun and LAU Hon Chuen Ambrose