?.. . '

REPORT& VALUATION

F07-000696-01

~NVESTMENTAND OWNER-OCCUPIED PROPERTIES

AUGUST2007 Valuation : F07-000696-01 Report No.

Our Ref : KBlGUAHlMNWJSUyl

Date 2nd August, 2007

The Directors MTR Corporation Limited MTR Tower Telford Plaza 33 Wai Yip Street Bay Kowloon

Dear Sirs.

Re: Investment and Owner-occupied Properties

Instructions, In accordance with your instructions for us to carry out market valuations of Purpose 8 Date of the property interests as set out in the attached schedule of valuation in Valuation which MTR Corporation Limited (the "Corporation") has interests, we confirm that we' have carried out inspections, made relevant enquiries and searches and obtained such further information as we consider necessary for the purpose of providing you with our opinion of the values of the property interests as at 30th June, 2007 (the 'date of valuation") for accounting purpose.

Basis of Our valuation of each property interest represents its market value which in Valuation accordance with the Valuation Standards on Properties of the Institute of Surveyors is defined as "the estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm's-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion."

Valuation Our valuation of each property interest excludes an estimated price inflated Assumptions or deflated by special terms or circumstances such as atypical financing, sale and leaseback arrangement, special considerations or concessions granted by anyone associated with the sale, or any element of special value.

DTZ DTZ AK?Rfi

16lF. 1063 K~ng'sRoad. . Hong Kong SWB!;@~%RS11063%16# Tel: +a52 2507 0507 a% +852 2507 0507 Fax: +a52 2530 1502 BE3 : +a52 2530 1502 www.dtz.com/cn www.dtz.com/cn MTR Corporation Limited Date of Valuation: Investment and Owner-occupied Properties 30th June, 2007

No allowance has been made in our valuations for any charges, mortgages or amounts owing on the properties nor any expenses or taxation which may be incurred in effecting a sale. Unless otherwise stated, it is assumed that the properties are free from encumbrances, restrictions and outgoings of any onerous nature which could affect their values.

Method of Unless otherwise stated, we have valued the property interests by (i) direct Valuation comparison approach assuming sale of each property interest in its existing state with the benefit of immediate vacant possession and by making reference to comparable sales transactions as available in the relevant market, or (ii) investment approach by capitalization of the net income derived from the existing tenancies with due allowance for any reversionary potential of the property interests.

Source of We have relied to a very considerable extent on the information given by you Information and have accepted advice given to us on such matters as planning approvals, statutory notices, easements, tenure, identification of properties, particulars of occupancy, tenancy details, floor plans and floor areas, number of parking spaces, interest attributable to the Corporation and all other relevant matters. Dimensions and measurements are based on the copies of documents or other information provided to us by you and are therefore only approximations. No on-site measurement has been carried out.

LandTenure In valuing the property interests the Government Leases of which expired before 30th June, 1997, we have taken into account that under the provisions contained in Annex Ill of the Joint Declaration of the Government of the United Kingdom and the Government of the People's Republic of China on the Question of Hong Kong as well as in the Leases (Extension) Ordinance such leases have been extended without premium until 30th June, 2047 and that rents of three per cent. of the rateable value are charged per annum from the date of extension. 1 &r- 3 3 9

3 Valuation Report No. F07-000696-01 218 .:{ a ij -. .~ MTR Corporation Limited Date of Valuation: Investment and Owner-occupied Properties 30th June, 2007

Title We have not been provided with copies of the title documents relating to the Investigation - property interests but have caused searches to be made at the Land Registry. However, we have not searched the original documents to verify ownership or to ascertain any amendments. All documents have been used for reference only and all dimensions, measurements and areas are approximate.

Site We have inspected the exterior and, wherever possible, the interior of the lnspectlon properties. However, no structural survey has been made, but in the course of our inspections, we did not note any serious defects. We are not, however, able to report whether the properties are free of rot, infestation or any other structural defects. No test was carried out on any of these~ices.

Non-Publication Neither the whole nor any part of this letter and schedule of valuation or any 8 Savings Clause reference thereto may be included in any document, circular or statement without our prior written approval of the form and context in which they will appear. . .

Finally and in accordance with our standard practice, we must state that this letter and schedule of valuation are for the use only of the party to whom they are addressed and no responsibility is accepted to any third party for the whole or any part of their contents.

We hereby enclose our schedule of valuation.

K. 6. Wo Surveyor

Director

ValuationReport No. F07-000696-01 MTR Corporation Limited Date of Valuation: Investment and Owner-occupied Properties 30th June, 2007

Capital value in existing state as at Property interest 30th June. 2007 HKS

1. Interests attributable to the MTR Corporation (being 50% interesls) in Telford Plaza II, shopping arcade including various car parking spaces. . No. 33 Wai Yip Street. . Kowloon'

2. Telford Plaza I including shopping arcade, podium shops, recreational facilities. cinema, school and market; and various car parking spaces,

Telford Gardens, ' . No. 33 Wai Yip Street, . ., Kowloon Bay. Kowloon

3. including shopping arcade. podium and upper podium shops. supemlarket and market stalls; and various car parking spaces in . Nos. 22-66 Wai Tsuen Road, Tsuen Wan. New Territories

4. Paradise Mall including market stalls; various private car parking spaces in the West Carpark Block; LP gas storage compound; and club house and associated recreational facilities in . No. 100 Shing Tai Road. Chai Wan. Hong Kong

Valuation Report No. F07-000696-01 418 MTR Corporation Limited Date of Valuation: Investment and Owner-occupied Properties 30th June: 2007

Capital value in existing state as at Property interest 30th June, 2007 HK8

5. Ground Floor Unit. No. 308 . Yaumatei, Kowloon

6. Ground Floor Unit. No. 783 Nathan Road, Mongkok, Kowloon

7. Kindergarten on Podium Level and car park Nos. 1-126, New Kwai Fong Gardens. Nos. 12-20 Kwai YI Road, Kwai Chung. New Territories

8. Various private car parking spaces on Car Park Floors PI, P2 and P3 al Section B. Phase I. Komhill. No. 10 Hong Yue Street. Quarry Bay. Hong Kong

9. 50% interesls of Shop Nos. 44.85. 86. 87. 88.89. 90, 91, 92, 93 on 1st Floor of Ihe wmmercial complex, Adrniralty Centre. No. 18 Harwurt Road. Adrniralty. Hong Kong

10. Neon light sign on the roof of Tower 1, Admiralty Centre. No. 18 Harwurt Road. Admiralty. Hong Kong

Valuation Report No. F07-000696-01 il $ MTR Corporation Limited Date of Valuation: Investment and Owneroccupied Properties 30th June. 2007

Capital value in existing state as at Property interest 30th June, 2007 HK$

11. Commercial development, kindergarten and commercial carpark, Tierra Verde. No. 33 Tsing King Road. Tsing Yi. New Territories

12. 51% interests of various plivate car parking spaces in One lntemal~onalFinance Centre. No. 1 Hahour View Street; and 100% interest of units 3306 to 3316 on 33rd Floor. 35th to 430% 45th to 52nd Floors and 51% interests of 1.172 car parking spaces on Basement 3. Basement 4 and Basement 5. Two International Finance Centre, No. 8 Finance Street. Central, Hong Kong

13. Indoor Sports Hall. NO. 11 Hoi Fai Road. . Kowloon

14. Portion of Market. II. No. 18 Hoi Ting Road. Tai Kok Tsui. Kowloon

15. Wet Market. Caribbean Coast. Kin Tung Road, . . New Territories

Valuation Report No. F07-000696-01 +.I MTR Corporation Limited Date of Valuation: Investment and Owner-occupied Properties 30th June, 2007

Capital value in existing state as at Property interest 30th June. 2007 HK$

16. Commercial Development known as The Lane. 16 private car parking spaces and 1 motor cyde parking space in . No. 15 Pui Shing Road, . Tseung Kwan 0. Sai Kung, New Territories

17. 51% interest of car park development (comprising 450 public car parking spaces, 46 ancillary residentialcar parking spaces. 8 ancillary commercial car parking spaces and 10 motor cycle parking spaces), No. 8 Clear Water Bay Road (Choi Hung Park 8 Ride). Choi Hung. Kowloon

18. 70% interest of Commercial Development (known as The Edge) and 50 Commercial Car Parking Spaces of . No. 9 Tong Chun Street, Tseung Kwan 0, Sai Kung. New Territories

19. Units 3301 to 3305 on 33rd Floor. Two International Finance Centre. No. 8 Finance Street. Central, Hong Kong

20. ORice No. 2101 on 21sl Floor. World-wide House. No. 19 Des Voeux Road Central, Hong Kong

Valuation Report No. F07-000696-01 718 :I 4 MTR Corporation Limited Date of Valuation: Investment and Owner-occupied Properties 30th June, 2007

Capital value in existing state as at Property interest 30th June, 2007 HKS

21. MTR Tower a! Telfwd Plaza and 52 Car Parking Spaces at Telford Gardens. No. 33 Wai Yip Street. Kowloon Bay. Kowloon

22. Levels 2. Mezzanine. 8 to 10 and 23 of Hang Seng Tower at Telford Gardens. No. 33 Wai Yip Street. Kowloon Bay. Kowloon

Total: 27,121,887,000

Valuation Report No. F07-000696-01 4 b MTR CORPORATIONLIMITED

REPORT& VALUATION

F07-000696-02

PROPERTIESHELD BY MTRC FOR SALE

AUGUST2007 Valuation : FO7-000696-02 R~~&'NO.

Our Ref : KBlGUJSUMNWyl

Date 2nd August, 2007

The Directors MTR Corporation Limited MTR Tower Telford Plaza 33 Wai Yip Street Kowloon Bay Kowloon

Dear Sirs,

Re: Properties Held by MTRC for Sale

Instructions, In accordance with your instructions for us to carry out market valuations of Purpose & Date of the properties as set out in the attached schedule of valuation in which MTR Valuation corporation Limited (the "Corporation") has interests, we confirm that we have carried out inspections, made relevant enquiries and searches and obtained such further information as we consider necessary for the purpose of providing you with our opinion of the values of the properties as at 30th June, 2007 (the "date of valuation") for accounting purpose.

Basis of Our valuation of each property represents its market value which in Valuation accordance with the Valuation Standards on Properties of the Hong Kong Institute of Surveyors is defined as "the estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm's-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion."

Valuation Our valuation of each property excludes an estimated price inflated or Assumptions deflated by special terms or circumstances such as atypical financing, sale and leaseback arrangement, special considerations or concessions granted by anyone associated with the sale, or any element of special value.

DTZ DTZ E%SR?i

16/F, 1063 King's Road, Quarly Bay, Hong Kong ~?&~~~R~~~1063%16~ Tel: +a52 2507 0507 : +a52 2507 0507 Fax: +a52 2530 1502 @H : +a52 2530 1502 w.dtz.com/cn www.dtz.com/cn MTR Corporation Limited Date of Valuation: Properties Held by MTRC for Sale 30th June, 2007

No allowance has been made in our valuations for any charges, mortgages or amounts owing on the properties nor any expenses or taxation which may be incurred in effecting a sale. Unless otherwise stated, it is assumed that the properties are free from encumbrances, restrictions and outgoings of any onerous nature which could affect their values.

Method of Unless otherwise stated, we have valued the properties by (i) investment Valuation approach by capitalization of the net income derived from the existing tenancies with due allowance for any reversionary potential of the properties, or (ii) direct comparison approach assuming sale of each property in its existing state with the benefit of immediate vacant possession and by making reference to comparable sales transactions as available in the relevant market.

Our valuation is our opinion of the market value of full interest in the property as at the date of valuation. If your Corporation does not own 100 per cent. interest of the property, proportionate adjustment has. to be made to our valuation to arrive at the value attributable to your Corporation.

Source of We have relied to a very considerable extent on the information given by you Information and have accepted advice given to us on such matters as planning approvals, statutory notices, easements, tenure, identification of properties, particulars of occupancy,floor plans and floor areas, number of parking spaces and all other relevant matters. Dimensions and measurements are based on the copies of documents or other information provided to us by you and are therefore bnly approximations. No on-site measurement has been carried out.

Tille We have not been provided with copies of the title documents relating to the lnvestlgalion properties but have caused searches to be made at the Land Registry. However, we have not searched the original documents to verify ownership or to ascertain any amendments. All documents have been used for reference only and all dimensions, measurements and areas are approximate. MTR Corporation Limited Date of Valuation: Properties Held by MTRC for Sale 30th June, 2007 site We have inspected the exterior of the properties. However, no structural Inspection survey has been made, but in the course of our inspections, we did not note any serious defects. We are not, however, able to report whether the properties are free of rot, infestation or any other structural defects. No test was carried out on any of the services.

Non-Publication Neither the whole nor any part of this letter and schedule of valuation or any 8 Savings clause reference thereto may be included in any document, circular or statement without our prior written approval of the form and context in which they will appear.

Finally and in accordance with our standard practice, we must state that this letter and schedule of valuation are for the use only of the party to whom they are addressed and no responsibility is accepted to any third party for the whole or any part of their contents.

We hereby enclose our schedule of valuation.

M.R.I.C.S.. M.H.K.I.S. Director

Valuation Report No. F07-000696-02 314 I Q MTR Corporation Limited Date of Valuation: Properties Held by MTRC for Sale 30th June, 2007

Capital value in existing state as at Property 30th June, 2007 HK$

419 domestic units. 2.648 parking spaces and 80 motor cycle parkingspaces of Island Harbouwiew and Olympian . Olympic Station. No. 11 Hoi Fai Road.Tai Kok Tsui. Kowloon; . The Arch, No.1 Austin Road West. Tsimshatsui, Kowloon; Harbour Green. No. 8 Sham Mong Road. Kowloon; . Caribbean Coast. No. 1 Kin Tung Road. Tung Chung. Lantau Island. New Territories; Residence Oasis. No. 15 Pui Sing Road. Tseung Kwan 0. Sai Kung, New Territories; The Grandiose. No. 9,Tong Chun Street. Tseung Kwan.0. Sai Kung, New Territories; . No. 8Kirig Ling Road, Tiu Keng Leng. Sai Kung. New Territories; and . Central Heights. No. 9 Tong Tak Street, Tseung Kwan 0. Sai Kung. New Territories; and Commercial development at Olympian City One. Olympic Station. No. 11 Hoi Fai Road, Tai Kok Tsui. Kowloon; and The kindergarten at Harbour Green. No. 8 Sham Mong Road. Kowloon. i . '(

REPORT& VALUATION

F07-000707

OF THE KINDERGARTENAT KOWLOONSTATION DEVELOPMENT,TSIM SHA TSUI, KOWLOON.

AUGUST2007 Valuation : Report No.

Our Ref : KBlENlMNWyl

Date 2nd August, 2007

The Directors MTR Corporation Limited MTR Tower Telford Plaza 33 Wai Yip Street Kowloon Bay Kowloon

Dear Sirs,

Re: 81% interest attributable of the Kindergarten at Kowloon Station Development, Tsim Sha Tsui, Kowloon.

Instructions. In accordance with your instructions for us to carry out a market valuation of Purpose 8 Date or the captioned property interest in wh~ch MTR Corporation Limited (the Valuation "Corporation") has interest (as advised the attributable interest to the Corporation is el%), we confirm that we have carried out inspection, made relevant enquir~esand searches and obtained such further ~nformationas we consider necessary for the purpose of providing you with our opinion of the value of the property interest as at 16th April, 2007 (the "date of valuation") for accounting purpose.

Basis of Our valuation of the property interest represents its market value which in Valuation accordance with the Valuation Standards on Properties of the Hong Kong Institute of Surveyors is defined as "the estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm's-length transaction afler proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion."

DTZ DTZ ~t$%li

16/F. 1063 King's Road, Quarry Bay, Hong Kong %%gRil%SE1063%16B Tel: +852 2507 0507 ~ @f: +852 2507 0507 Fax:+85225301502 BA : +852 2530 1502 www.dtz.comfcn www.dtz.wdcn MTR Corporation Limited Date of Valuation: 81% interest attributable of the Kindergarten at 16th April, 2007 Kowloon Station Development, Tsim Sha Tsui, Kowloon.

Valuation Our valuation excludes an estimated price inflated or deflated by special Assumptions terms or circumstances such as atypical financing, sale and leaseback arrangement, special considerations or concessions granted by anyone associated with the sale, or any element of special value.

No allowance has been made in our valuation for any charges, mortgages or amounts owing on the property interest nor any expenses or taxation which may be incurred in effecting a sale. Unless otherwise stated, it is assumed that the property is free from encumbrances, restrictions and outgoings of any onerous nature which could affect its value.

Method of Unless otherwise stated, we have valued the property interest by investment Valuation approach by capitalization of the net income derived from the existing tenancy with due allowance for any reversionary income potential of the property interest, or where appropriate direct comparison approach by making reference to comparable sales transactions as available in the relevant market.

Source of We have relied to a very considerable extent on the information given by you Information and have accepted advice given to us on such matters as planning approvals, statutory notices, easements, tenure, identification of property, particulars of occupancy, floor plans and floor areas, interest attributable to the Corporation and all other relevant matters. Dimensions and measurements are based on the copies of documents or other information provided to us by you and are therefore only approximations. No on-site measurement has been carried out.

Title We have not been provided with copies of the title documents relating to the Investigation property but have caused searches to be made at the Land Registry. However, we have not searched, the original documents to verify ownership or to ascertain any amendments. All documents have been used for reference only and all dimensions, measurements and areas are approximate.

Valuation4 Report No. F07-000707 MTR Corporation Limited Date of Valuation: 81% interest attributable of the Kindergarten at 16th April. 2007 Kowloon Station Development Tsim Sha Tsui. Kowloon.

Site We have inspected the exterior of the property. However, no structural Inspection survey has been made, but in the course of our inspection, we did not note any serious defects. . We are not,' however, able to report whether the property is free of rot, infestation or any other structural defects. No test was carried out on any of the services.

NOn-publicauon Neither the whole nor any part of this letter and schedule of valuation or any 8 Savings Clause reference thereto may be included in any document, circular or statement without our prior written approval of the form and context in which they will appear.

Finally and in accordance with our standard practice, we must state that this letter and schedule of valuation are for the use only of the party to whom they are addressed and no responsibility is accepted to any third party for the

whole or any. . part of their contents.

We hereby enclose our schedule of valuation.

Director

Valuation Report No. F07-000707 ..$

, ii .. MTR Corporation Limited Date of Valuation: 3 81% interest attributable of the Kindergarten at 16th April, 2007 Kowloon Station Development, Tsim Sha Tsui, Kowloon. 9

Capital value in existing state as at 16th April, 2007 HKS

81% interest attributable of the kindergarten at Kowloon Station Development. Tsim Sha Tsui. Kowloon.

3

5,- Valuation Report No..FO7-000707 414