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恆力房地產發展（集團）有限公司 HENGLI PROPERTIES DEVELOPMENT (GROUP) LIMITED (Incorporated in Bermuda with limited liability) (Stock Code: 169)

VOLUNTARY ANNOUNCEMENT REGARDING A LEASE AGREEMENT WITH DEPARTMENT STORE (GROUP) Co., LTD

This is a voluntary announcement made by the Company.

The Board is pleased to announce that regarding the lease agreement dated 18 January 2011 (the “Agreement”) between Fujian Zhonglu Real Estate Development Co., Limited (福建中旅房地產開發有限公司) (“Fujian Zhonglu Real Estate”), a 95% owned subsidiary of the Company, and Beijing Wangfujing Department Store (Group) Co. Limited. (“Wangfujing”), Fujian Zhonglu Real Estate has obtained written consent from Wangfujing on 8 April 2011 for the disclosure of the terms of the Agreement.

This announcement is made by the Company on a voluntary basis to keep the shareholders and potential investors of the Company informed of the latest business development of the Group.

BACKGROUND

Reference is made to the Company’s announcement dated 18 March 2011 (the “Announcement”). Terms used herein shall bear the same meanings as ascribed to them in the Announcement unless otherwise specified.

As disclosed in the Announcement, Fujian Zhonglu Real Estate owns the property in construction named Hengli City (恆力城) which is located in the financial district of Fuzhou, Fujian Province, PRC. The property is being developed into a residential, office and retail complex with a total gross floor area of around 241,600 sq.m. and is expected to be completed in the second half of 2011. The retail portion of the complex comprises an 8-story commercial podium which would be held by Fujian Zhonglu Real Estate for long-term lease.

On 18 January 2011, Fujian Zhonglu Real Estate entered into the Agreement with Wangfujing to lease the 8- story commercial podium of Hengli City (“Leased Property”) to Wangfujing. Fujian Zhonglu Real Estate received the deposit of RMB17,460,000 from Wangfujing on 4 March 2011 and the Agreement became unconditional.

On 8 April 2011, Fujian Zhonglu Real Estate obtained written consent from Wangfujing for the disclosure of the terms of the Agreement.

– 1 – THE LEASE AGREEMENT

Date: 18 January 2011

Parties: (1) Fujian Zhonglu Real Estate Development Co., Limited (2) Beijing Wangfujing Department Store (Group) Co. Limited

Leased property: the 8-story commercial podium of Hengli City

Leased area: approximately 55,029 sq.m., subject to the final floor area on the property ownership certificate

Lease term: 20 years from delivery of the Lease Property to Wangfujing

Rent: approximately RMB1,260,000,000 in total for the lease term, subject to the final rent calculated based on the final floor area on the property ownership certificate. The rent will have an average annual increase of about 4% in the first four years and will have an average increase of about 10% every four years from the fifth year to the twentieth year of the lease term.

BENEFIT OF THE LEASE TO THE COMPANY

The Board is of the view that the lease will bring stable cash flow to the Group and the leased property will appreciate over the long run. The Board also believes that the well-known brand name of Wangfujing could help to strengthen the Group’s brand recognition, as well as further enhance the Group’s image in the market.

INFORMATION OF WANGFUJING

Beijing Wangfujing Department Store (Group) Co., Limited. operates retail department store groups. Its predecessor, “New ’s first store” - Beijing Department Store, was founded in 1955 and is based in Beijing, PRC. After fifty years of development, Wangfujing operates over twenty chain stores in first-tier and second- tier cities in PRC and becomes the leader of its industry and one of the largest chain retail group focused on department store in PRC. Wangfujing is also a listed company on the Stock Exchange. (stock code: 600859)

THE GROUP

The Group is principally engaged in commercial property and office letting, sales of developed properties and investment holdings in PRC and in Hong Kong.

– 2 – DEFINITIONS

The following words and phrase used in this announcement have the same meaning assigned:

“Board” the board of directors of the Company

“Company” Hengli Properties Development (Group) Limited, a company incorporated in Bermuda whose securities are listed on the Stock Exchange of Hong Kong (stock code: 169)

“Group” the Company together with its subsidiaries

“PRC” The People’s Republic of China (for purpose of this announcement excluding Hong Kong SAR, Macau SAR and Taiwan)

“Hengli City” the Group’s property development project located at No. 128 Wusi Road, Gulou District, Fuzhou City, Fujian Province, the PRC, which is being developed into a residential, office and retail complex with a total gross floor area of around 241,600 sq.m

“RMB” Renminbi, the lawful currency of the PRC

“sq.m.” square metre(s)

By order of the board Hengli Properties Development (Group) Limited Chen Chang Wei Chairman

Hong Kong, 11 April 2011

As at the date of this announcement, Mr. Chen Chang Wei, Ms. Chan Sheung Ni, Ms. Chen Dongxue are the Executive Directors. Ms. Lin Wen Feng, Mr. Ma Ving Lung and Mr. Yip King Keung, Pony are the Independent Non-executive Directors.

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