Press Release For immediate release

STRATEGIC PARTNERSHIP ANNOUNCEMENT BETWEEN PHOENIX AND FINANCIAL STREET HOLDINGS ON SHANGHAI’S JING’AN LANDMARK MIXED USE DEVELOPMENT

Shanghai, March 13th, 2019 - Financial Street Holdings (“Financial Street”) unveiled its latest development in the “Financial Street Centre” series and announced its strategic partnership with Phoenix Property Investors (“Phoenix”) today on phase one of a new landmark mixed use development at the heart of Jing’an, Shanghai.

Strategic Partnership Announcement between Financial Street Holdings And Phoenix Property Investors

With a G.F.A. of approximately 490,000 sqm, the project is located in the North Plaza of Shanghai Railway Station, bordered by Datong Road to the East, Zhongxing Road and Jiaotong Road to the South, Pengyuepu to the West and Zhonghuaxin Road and Hutai Road to the North. The mixed-use project includes residential, office, retail as well as culture, entertainment, recreational facilities and public open green space.

1 The office area is approximately 220,000 sqm, occupies over 63% of total G.F.A., while the retail area is approximately 60,000 sqm, occupying around 18% of total G.F.A..

“Financial Street Shanghai” is anticipated to be a landmark mixed use development at the heart of Jing’an in Shanghai, introducing new experiences in office, shopping, dining and entertainment experience.

The development will be constructed in two phases. Phase I consists of 5 office buildings, retail space and greenery area, with G.F.A. of approximately 119,000 sqm, is scheduled for completion by the first quarter of 2020.

Phase II, which has been named as ”Financial Street Rongyue Center”, consists of office buildings and a shopping mall of 60,000 sqm, with G.F.A. of approximately 279,000 sqm, offering Grade 5A office building, shopping, theatre, entertainment, recreational facilities and public green space, is scheduled for completion by the third quarter of 2021.

A New Landmark Mixed Use Development at the Heart of Jing’an (Aerial View Rendering)

Phase I of the development features 4 office buildings of 4- to 18-storeys, with G.F.A. of

2 approximately 70,000 sqm, including Grade 5A office building, boutique retail space, and surrounded by open green space of over 10,000 sqm; bringing the best possible work, dining and leisure experience for the tenants and customers. It is scheduled for completion by the first quarter of 2020.

In the National 13th Five-Year Plan, under the layout of “One Axis and Three Belts” proposed by Jing’an District Government, is to develop a comprehensive development axis between the South and North regions to achieve mutual growth through cooperation and collaboration, as well as three development zones with distinct features and coordinated development. With its prime location along the central axis of Jing’an, and the full support and guidance by the Jing’an District Government, the development will undertake the core role as a business hub, inspiring the new vitality of business development in Jing’an District and accelerating the cultivation of new economic growth points.

The development is located at the heart of Jing’an District, directly facing Shanghai Railway Station, adjacent to People’s Square and Jing’an Temple, and with easy access to Metro Lines 2, 12 and 13 via Lines 1, 3 and 4. Neighboring the North-South Elevated Road and the Inner Ring Elevated Road, it provides a quick access via rail and road transportation network to other business circles such as Lujiazui, Huaihai Road and Xintiandi and is about 15 to 35 kilometers away from Hongqiao Transportation Hub and Pudong International Airport respectively. With its strategic location and transportation advantages, integration with Shanghai’s urban planning and other government development, the development will become the landmark of the region and further enhance the city skyline.

"This development is the second landmark mixed use development at the heart of Jing’an by Financial Street Holdings adhering to its corporate vision of 'Building City Spirit, Enhancing Regional Value'. It is our honor to have the opportunity to participate in the development in such a distinguished location,” said Gao Liang, the Chairman of Financial Street Holdings Limited. “We are also looking forward to our first partnership with Phoenix Property Investors, a famous private equity real estate investment group in Asia Pacific, to explore the potential of the region, and develop a new landmark

3 commercial development at the heart of Jing’an. Financial Street Holdings will invite more quality enterprises to move in and to further enhance the development of regional economic growth.”

“Benefiting from the rapid urbanization and the increasing market demand for commercial needs in Shanghai CBD, Jing’an District has always been the core of Shanghai in convergence of business and culture. Phoenix is optimistic about the future potential of the district, and is pleased to have a strategic partnership with Financial Street Holdings, one of the leading real estate enterprises in China,” said Samuel W.T. Chu, Founding Partner and Chief Investment Officer of Phoenix Property Investors. “With our considerable experience in real estate development and asset management across Asia Pacific for over a decade, and Financial Street Holding’s abundant experience in property development in prime locations of various cities in China, it is anticipated that this development would gradually become a prominent landmark in the Jing’an district.”

Strategic Partnership of Financial Street Holdings and Phoenix Property Investors on Phase One of Financial Street Shanghai Project (Rendering showing the elevations of Phase One facing ZhongXing Road)

Meanwhile, two internationally recognized real estate agencies were also invited to share their insights on property market trends of the region. “With the drastic reduction

4 in the supply of new office buildings in the traditional business area in the inner ring, the Jing’an new CBD, where the project is located, will become a key development area, which reassures that the market potential and influence of this business circle are gradually increasing.” Mr. Luke Moffat, Regional Managing Director of CBRE Eastern China, shared. Kelvin Li, Managing Director of Cushman & Wakefield Eastern China, said: “Due to the limited supply of new office buildings in Jing’an CBD in recent years, this development, being the largest office building supply development in the district in the coming four years, will definitely enjoy excellent opportunities and advantages.”

###

About Financial Street Holdings

Financial Street Holdings Co., Ltd. (Stock Code: 000402), listed on the in 2000, is a large state-owned holding company focusing on commercial real estate development and operation. With the mission of “Building City Spirit, Promoting Regional Value”, Financial Street Holdings’ stable operation, standard management and sound development enables the company to form a unique development strategy and business model, achieving outstanding performance in the field of commercial real estate development.

Lasting more than twenty years, Financial Street Holdings has made significant efforts on constructing Financial Street in accordance with the national financial management center. Now, it has become a nationwide financial management core, integrating decision-making supervision, asset management, payment and settlement, information exchange and standard setting.

Financial Street Holdings Ltd is established in Beijing and mainly works on developing the core cities in five major urban clusters (Beijing-Tianjin-Hebei Region, Yangtze River Delta, Pearl River Delta, Chengdu-Chongqin, and middle reaches of the Yangtze River), trying to develop the key cities in these five major urban clusters and satellite cities in three metropolitan regions (Beijing-Tianjin, Shanghai, and Guangzhou-Shenzhen), covering 15 key cities with a development area of ​ ​ over 20 million square meters.

From the development of real estate and the improvement of urban functions, Financial Street Holdings builds on the resources and brand advantages of Beijing Financial

5 Street to form a unique “FINANCIAL STREET MODEL”, putting equal attention to real estate development and industrial construction. Real estate acts as the platform while industry is the core. Through real estate and industrial development, Financial Street Holdings promotes economic development and enhances regional value.

For more information, please visit www.jrjkg.com.cn.

About Phoenix Property Investors

Phoenix Property Investors ("Phoenix") is an experienced, independent-owned and managed private equity real estate investment group. Founded in 2002, Phoenix has a proven track record of creating value and delivering results for its investors and stakeholders by investing in high-quality real estate investment opportunities in the residential, retail, office and commercial sectors across 14 first-tier Pan-Asian cities, including Kong, Tokyo, Osaka, Kyoto, Sapporo, Shanghai, Beijing, Sydney, Melbourne, Seoul, Singapore, Manila, Jakarta and Taipei. Phoenix invests on behalf of global institutional investors, including sovereign wealth funds, public and corporate pension plans, foundations, university endowments, insurance companies and important family offices. Phoenix Property Investors Limited is a registered Investment Advisor with the United States Securities and Exchange Commission (SEC).

Over the past 17 years, Phoenix has managed over US$10.5 billion in gross real estate assets* with over 160 talented specialists operating from seven offices in Hong Kong, Seoul, Shanghai, Singapore, Sydney, Taipei and Tokyo. By keeping all of the vital investments, project management, asset management, finance, legal, risk, compliance and investor relations functions in-house, Phoenix has ensured the best possible levels of collaboration to maintain efficiency and quality. The collaboration between Phoenix and some of the world’s most renowned architects and designers has created value through its distinctive, premium-quality, award-winning real estate projects – each positively underpins Phoenix’s commitment to excellence and reinforces the principle to conceive and create original, distinctive and innovative properties - each designed to enhance the lives of those who live, work

6 and shop in them. For more details, please visit www.ppinvestors.com

*As of September 30, 2018, Phoenix has managed over US$10.5 billion of gross real estate assets; comprised of $6.8 billion of current assets (including $5.3 billion of assets solely managed by Phoenix and $0.8 billion of assets co-managed by Phoenix and joint venture partners; $0.30 billion of new commitments post September 30, 2018; $0.40 billion of value reflection of TKO O’South Retail Portfolio adopting the aggregated valuation of the portfolio as of September 30, 2018); as well as $3.7 billion of gross real estate assets sold or realized which are no longer under management by Phoenix. This is the estimated market value of Phoenix Group's current assets and includes both equity (such as undrawn capital commitment, cash and cash equivalents, etc.) and debt (excluding short-term loan or subscription line in the amount of circa US$238 million).

7