APPENDIX V – VALUATION REPORTS BY THE INDEPENDENT VALUERS Unsold Portions of Phase 1, Under Construction Site of Phase 2 and Phases 3D-3E, and Vacant Land Date of valuation: Parcels of Phases 3A-3C, named Baitang One located in Suzhou Industrial Park, Suzhou, Jiangsu 30 September 2012 Province, the People’s Republic of China GFA Market Value Portion (sq.m.) (RMB) High-rise apartment 14,240.98 199,373,720 Mid-rise apartment 1,295.93 21,512,438 Car parking spaces (751 lots) 30,670.34 37,550,000 Sub-total 46,207.25 258,000,000 5.2 Gross Development Value of Phase 2 and Phases 3A-3E The Gross Development Value is assumed that it would have been completed as at the Date of Valuation in accordance with the development scheme provided to us. Given Gross Development Value of the Property being of a complex development comprising high-rise apartment, mid-rise apartment, duplex house, terrace house, semi-detached house, detached house, retail and car parking spaces, we have considered it appropriate to adopt the Direct Comparison Approach to arrive at an estimated Gross Development Value (“GDV”) upon completion. Direct Comparison Approach GDV of High-rise Apartment Portion In the course of our valuation, we have collected three high-rise apartment comparables and summarised the details as follows:- Basic Details Comparable 1 Comparable 2 Comparable 3 Copic International Linglong Bay Central Park Building Name Community ((cid:13442)(cid:20744)(cid:15750)) (cid:11)(cid:17457)(cid:16524)(cid:12817)(cid:10728)(cid:12) ((cid:17457)(cid:12036)(cid:11931)(cid:12459)(cid:14984)(cid:14617)) Zhongyuan Road / Address No.1 Linglong Street No.88 Hefeng Road Liuli Street District SIP SIP SIP Use High-rise apartment High-rise apartment High-rise apartment Year of Completion 2013 2013 2009 Transaction Date Jul-12 Mar-12 May-12 Condition of Sale Transacted Transacted Transacted Level 22 20F 8F Valuation Report No. SH/12/931091(b)/GYR/SLZ/SNX/SYK 27/42 V-301 APPENDIX V – VALUATION REPORTS BY THE INDEPENDENT VALUERS Unsold Portions of Phase 1, Under Construction Site of Phase 2 and Phases 3D-3E, and Vacant Land Date of valuation: Parcels of Phases 3A-3C, named Baitang One located in Suzhou Industrial Park, Suzhou, Jiangsu 30 September 2012 Province, the People’s Republic of China Gross Floor Area 119.05 176.24 89.13 (sq.m.) Unit Price (RMB/sq.m.) 15,960 13,472 13,127 For the comparables, analysis and adjustment of comparable sales evidence have been made to reflect differences in transaction state, time, location & environment, accessibility, age & maintenance, completion date, facilities, appearance, floor, size, decoration standard, view, layout, management, etc. We have taken into account the above comparables with appropriate adjustments and then we adopted a unit price of RMB13,700/sq.m. for luxury decorated high-rise apartment, RMB11,700/sq.m. for simply decorated high-rise apartment. GDV of Mid-rise Apartment Portion In the course of our valuation, we have collected three mid-rise apartment comparables and summarised the details as follows:- Basic Details Comparable 1 Comparable 2 Comparable 3 Times City Beauty Garden Love Island Building Name ((cid:15122)(cid:10971)(cid:14960)(cid:10728)) ((cid:12233)(cid:12820)) ((cid:10127)(cid:14586)(cid:11099)) Xiandai Avenue / No.99 Qingcheng Heshun Road / Address Zhongnan Street Road Yangting Road District SIP SIP SIP Use Mid-rise apartment Mid-rise apartment Mid-rise apartment Year of Completion 2014 2013 2012 Transaction Date Sep-12 Sep-12 Sep-12 Condition of Sale Asking Asking Asking Level 3F 3F 4F Gross Floor Area 120-155 137-186 159-232 (sq.m.) Unit Price (RMB/sq.m.) 15,000 15,000 12,500 For the comparables, analysis and adjustment of comparable sales evidence have been made to reflect differences in transaction state, time, location & environment, accessibility, age & maintenance, completion date, facilities, appearance, floor, size, decoration standard, view, layout, management, etc. Valuation Report No. SH/12/931091(b)/GYR/SLZ/SNX/SYK 28/42 V-302 APPENDIX V – VALUATION REPORTS BY THE INDEPENDENT VALUERS Unsold Portions of Phase 1, Under Construction Site of Phase 2 and Phases 3D-3E, and Vacant Land Date of valuation: Parcels of Phases 3A-3C, named Baitang One located in Suzhou Industrial Park, Suzhou, Jiangsu 30 September 2012 Province, the People’s Republic of China We have taken into account the above comparables with appropriate adjustments and then we adopted a unit price of RMB16,300/sq.m. GDV of Duplex House Portion In the course of our valuation, we have collected three duplex house comparables and summarised the details as follows:- Basic Details Comparable 1 Comparable 2 Comparable 3 The Living Bank Park Mansion Ben An Building Name ((cid:11524)(cid:14602)(cid:15311)(cid:10135)) ((cid:16859)(cid:12817)(cid:15750)) ((cid:15763)(cid:13031)(cid:17457)(cid:13401)(cid:10335)(cid:10135)) Yangcheng Road / Address No.8 Xizhou Road No.99 Qingcheng Road Nansi Road District SIP SIP SIP Use Duplex house Duplex house Duplex house Year of Completion 2009 2014 2009 Transaction Date Sep-12 Sep-12 Sep-12 Condition of Sale Asking Asking Asking Gross Floor Area 240 250 250 (sq.m.) Unit Price (RMB/sq.m.) 20,417 14,000 17,600 For the comparables, analysis and adjustment of comparable sales evidence have been made to reflect differences in transaction state, time, location & environment, accessibility, age & maintenance, completion date, facilities, appearance, floor, size, decoration standard, view, layout, management, etc. We have taken into account the above comparables with appropriate adjustments and then we adopted a unit price of RMB18,700/sq.m. GDV of Terrace House Portion In the course of our valuation, we have collected three terrace house comparables and summarised the details as follows:- Valuation Report No. SH/12/931091(b)/GYR/SLZ/SNX/SYK 29/42 V-303 APPENDIX V – VALUATION REPORTS BY THE INDEPENDENT VALUERS Unsold Portions of Phase 1, Under Construction Site of Phase 2 and Phases 3D-3E, and Vacant Land Date of valuation: Parcels of Phases 3A-3C, named Baitang One located in Suzhou Industrial Park, Suzhou, Jiangsu 30 September 2012 Province, the People’s Republic of China Basic Details Comparable 1 Comparable 2 Comparable 3 Forest and Vallev Villa Natural Villas Elegant Villa Building Name ((cid:13592)(cid:12803)(cid:14961)(cid:13214)(cid:15750)) ((cid:20882)(cid:15196)) ((cid:14763)(cid:12100)(cid:11900)(cid:15525)(cid:945) Xiandai Avenue / Address No.511 Gangtian Road No.1211 Xinghu Road Xieyu Street District SIP SIP SIP Use Terrace house Terrace house Terrace house Year of Completion 2013 2013 2013 Transaction Date Sep-12 Sep-12 Sep-12 Condition of Sale Asking Asking Asking Gross Floor Area 230 240 258 (sq.m.) Unit Price (RMB/sq.m.) 21,739 20,000 31,008 For the comparables, analysis and adjustment of comparable sales evidence have been made to reflect differences in transaction state, time, location & environment, accessibility, age & maintenance, completion date, facilities, appearance, floor, size, decoration standard, view, layout, management, etc. We have taken into account the above comparables with appropriate adjustments and then we adopted a unit price of RMB22,200/sq.m. GDV of Semi-detached House Portion In the course of our valuation, we have collected three semi-detached house comparables and summarised the details as follows:- Basic Details Comparable 1 Comparable 2 Comparable 3 Forest and Vallev Villa Natural Villas Jian Bing Garden Building Name (cid:11)(cid:13592)(cid:12803)(cid:14961)(cid:13214)(cid:15750)(cid:12) (cid:11)(cid:20882)(cid:15196)(cid:12) (cid:11)(cid:12508)(cid:10390)(cid:17041)(cid:12) Xiandai Avenue / Address No.511 Gangtian Road No.69 Qiongji Road Xieyu Street District SIP SIP SIP Semi-detached Use Semi-detached house Semi-detached house house Year of Completion 2013 2013 2013 Transaction Date Sep-12 Sep-12 Sep-12 Valuation Report No. SH/12/931091(b)/GYR/SLZ/SNX/SYK 30/42 V-304 APPENDIX V – VALUATION REPORTS BY THE INDEPENDENT VALUERS Unsold Portions of Phase 1, Under Construction Site of Phase 2 and Phases 3D-3E, and Vacant Land Date of valuation: Parcels of Phases 3A-3C, named Baitang One located in Suzhou Industrial Park, Suzhou, Jiangsu 30 September 2012 Province, the People’s Republic of China Condition of Sale Asking Asking Asking Gross Floor Area 350 330 360 (sq.m.) Unit Price (RMB/sq.m.) 34,286 22,727 20,833 For the comparables, analysis and adjustment of comparable sales evidence have been made to reflect differences in transaction state, time, location & environment, accessibility, age & maintenance, completion date, facilities, appearance, floor, size, decoration standard, view, layout, management, etc. We have taken into account the above comparables with appropriate adjustments and then we adopted a unit price of RMB26,400/sq.m. GDV of Detached House Portion In the course of our valuation, we have collected three detached house comparables and summarised the details as follows:- Basic Details Comparable 1 Comparable 2 Comparable 3 Natural Villas Acadia Elegant Villa Building Name (cid:11)(cid:20882)(cid:15196)(cid:12) (cid:11)(cid:10115)(cid:13001)(cid:11120)(cid:16488)(cid:12) (cid:11)(cid:14763)(cid:12100)(cid:11900)(cid:15525)(cid:12) Xiandai Avenue / Xieyu No.99 Qingcheng Address No.1211 Xinghu Road Street Road District SIP SIP SIP Use Detached house Detached house Detached house Year of Completion 2013 2012 2013 Transaction Date Sep-12 Sep-12 Sep-12 Condition of Sale Asking Asking Asking Gross Floor Area 330 400 550 (sq.m.) Unit Price (RMB/sq.m.) 30,303 30,000 43,636 For the comparables, analysis and adjustment of comparable sales evidence have been made to reflect differences in transaction state, time, location & environment, accessibility, age & maintenance, completion date, facilities, appearance, floor, size, decoration standard, view, layout, management, etc. Valuation Report No. SH/12/931091(b)/GYR/SLZ/SNX/SYK 31/42 V-305 APPENDIX V – VALUATION REPORTS BY THE INDEPENDENT VALUERS Unsold Portions of Phase 1, Under Construction Site of Phase 2 and Phases 3D-3E, and Vacant Land Date of valuation: Parcels of Phases 3A-3C, named Baitang One located in Suzhou Industrial Park, Suzhou, Jiangsu 30 September 2012 Province, the People’s Republic of China We have taken into account the above comparables with appropriate adjustments and then we adopted a unit price of RMB32,400/sq.m. GDV of Retail Portion In the course of our valuation, we have collected three retail comparables and summarised the details as follows:- Basic Details Comparable 1 Comparable 2 Comparable 3 Copic International Lejia Building Urban VIP Building Name Community (cid:11)(cid:13239)(cid:12463)(cid:10964)(cid:16100)(cid:12) (cid:7625)(cid:11293)(cid:15153)(cid:57)(cid:44)(cid:51)(cid:7626) (cid:7625)(cid:17457)(cid:12036)(cid:11931)(cid:12459)(cid:14984)(cid:14617)(cid:7626) Xiandai Avenue / Zhongyuan Road / Address Liuli Street Xincghu Street Liuli Street District SIP SIP SIP Use Retail Retail Retail Year of Completion 2010 2013 2013 Transaction Date Sep-12 Sep-12 Sep-12 Condition of Sale Asking Asking Asking Level 1-2F 1-2F 1F Gross Floor Area 42-900 70-260 90 (sq.m.) Unit Price (RMB/sq.m.) 38,000 30,000 31,000 For the comparables, analysis and adjustment of comparable sales evidence have been made to reflect differences in transaction state, time, location & environment, accessibility, age & maintenance, completion date, facilities, appearance, floor, size, decoration standard, view, type, management, etc. We have taken into account the above comparables with appropriate adjustments and then we adopted a unit price of RMB30,700/sq.m. for level 1. We have made reference to floor value differences of the retail property in the market and taken into account the layout and vertical transportation of retail portion. The floor value differences which we have adopted are summarized in the following table: Floor 1 2 3 Difference 100% 65% 50% Valuation Report No. SH/12/931091(b)/GYR/SLZ/SNX/SYK 32/42 V-306 APPENDIX V – VALUATION REPORTS BY THE INDEPENDENT VALUERS Unsold Portions of Phase 1, Under Construction Site of Phase 2 and Phases 3D-3E, and Vacant Land Date of valuation: Parcels of Phases 3A-3C, named Baitang One located in Suzhou Industrial Park, Suzhou, Jiangsu 30 September 2012 Province, the People’s Republic of China GDV of Car parking spaces Portion In the course of our valuation, we have collected several car parking spaces comparables and taken into account the comparables with appropriate adjustments, and then we adopted a unit price of RMB50,000/lot Reconciliation of GDV of Phase 2 and Phases 3A-3E According to the sales information provided by the Company, some high-rise apartment units of Phase 2 with a total gross floor area of approximately 14,194.12 sq.m., as at the date of valuation are subject to various agreements for sale and purchase for a total consideration of RMB159,674,865. The total consideration aforesaid in respect of this portion of the property is reflected and included in our valuation. Based on the above parameters, the GDV of the Property is summarized as follows: Proposed GFA GDV Phase Portion (sq.m.) (RMB) High-rise apartment 133,509.70 1,723,081,711 Duplex house 9,123.44 170,608,328 Phase2 (Under Terrace house 7,584.45 168,374,790 construction) Others 1,852.00 0 Car parking spaces (664 lots) 31,020.35` 33,200,000 Retail 8,657.00 190,468,495 Phase3D-3E Others 4,612.00 0 (Under construction) Kindergarten 4,490.00 0 Car parking spaces (99 lots) 4,895.00 4,950,000 Sub-total (cid:3) (cid:3) 205,743.94 2,291,000,000 High-rise apartment 235,580.00 3,029,663,000 Mid-rise apartment 15,132.00 246,651,600 Phase 3A-3C Semi-detached house 5,928.00 156,499,200 (Vacant land) Detached house 2,980.00 96,552,000 Others 2,387.00 N/A Car parking spaces (1,337 lots) 71,277.54 66,850,000 Sub-total (cid:3) (cid:3) 333,284.54 3,596,000,000 Total (cid:3) (cid:3) 539,028.48 5,887,000,000 Valuation Report No. SH/12/931091(b)/GYR/SLZ/SNX/SYK 33/42 V-307 APPENDIX V – VALUATION REPORTS BY THE INDEPENDENT VALUERS Unsold Portions of Phase 1, Under Construction Site of Phase 2 and Phases 3D-3E, and Vacant Land Date of valuation: Parcels of Phases 3A-3C, named Baitang One located in Suzhou Industrial Park, Suzhou, Jiangsu 30 September 2012 Province, the People’s Republic of China 5.3 Market Value of Phase 2 and Phase 3 in existing state In course of the valuation, we have valued the Market Value of Phase 2 and Phase 3D-3E in existing state by Residual Approach. We have valued the Market Value of Phase 3A-3C in existing state by both Residual Approach and Direct Comparison Approach. For Residual Approach, the market value is arrived by deducting the estimated development costs including construction cost, professional fee, interest required to complete the development and due allowances for the developer’s profit, marketing cost and acquisition cost from the Gross Development Value assuming it would have been completed as at the Date of Valuation in accordance with the development scheme provided to us. For Direct Comparison Approach we have made reference to comparable sales evidence as available in the relevant market. Phase 2 and Phases 3D-3E by Residual Approach Estimated Gross Development Value We have adopted above figures as the Gross Development Value of RMB2,291,000,000. Business Tax A 5.55% business tax is adopted for the disposal of the proposed development. Sales Fees A 1% sales fee is adopted for the disposal of the proposed development. Development Period The estimated development (completion) period is 1.58 years from the Date of Valuation. Development Cost We have applied the estimated total development costs provided by the Company for the proposed development including the professional fee and contingency fee estimated at RMB1,151,603,051. Expended Construction Cost According to the information provided by the Company, RMB423,915,570 has been expended as part of the construction cost, we have take this into account in our valuation. Administration Fee We adopted an administration fee of 3% on the Development Cost, which is estimated at RMB21,830,624. Interest Expense We adopted an interest of 6.15% per annum on Development Cost and Administration Fee by referring to interest rate for similar kind of term loan from the People’s Bank of China. The estimated interest expenses on Development Cost and Administration Fee is RMB36,205,099. Valuation Report No. SH/12/931091(b)/GYR/SLZ/SNX/SYK 34/42 V-308 APPENDIX V – VALUATION REPORTS BY THE INDEPENDENT VALUERS Unsold Portions of Phase 1, Under Construction Site of Phase 2 and Phases 3D-3E, and Vacant Land Date of valuation: Parcels of Phases 3A-3C, named Baitang One located in Suzhou Industrial Park, Suzhou, Jiangsu 30 September 2012 Province, the People’s Republic of China Developer’s Profit We adopted a developer’s profit of 12% on Development Cost and Administration Fee. The developer’s profit is adopted by referring to our experience for similar kind of development project under the prevailing market conditions and risk exposure. The estimated developer’s profit is RMB89,942,173. Market Value of Phase 2 and Phases 3D-3E in existing state Based on the above analysis and taking into account the land profit and deferment, we are of the opinion that the Market Value of Phase 2 and Phases 3D-3E of the Property in existing state, as at the Date of Valuation, was RMB1,038,000,000. Phases 3A-3C by Residual Approach Estimated Gross Development Value We have adopted above figures as the Gross Development Value of RMB3,596,000,000. Business Tax A 5.55% business tax is adopted for the disposal of the proposed development. Sales Fees A 1% sales fee is adopted for the disposal of the proposed development. Development Period The estimated development (completion) period is 3.00 years from the Date of Valuation. Development Cost We have applied the estimated total development costs provided by the Company for the proposed development including the professional fee and contingency fee estimated at RMB1,918,317,161. Administration Fee We adopted an administration fee of 3% on the Development Cost, which is estimated at RMB57,549,515. Interest Expense We adopted an interest of 6.15% per annum on Development Cost and Administration Fee by referring to interest rate for similar kind of term loan from the People’s Bank of China. The estimated interest expenses on Development Cost and Administration Fee is RMB185,048,077. Valuation Report No. SH/12/931091(b)/GYR/SLZ/SNX/SYK 35/42 V-309 APPENDIX V – VALUATION REPORTS BY THE INDEPENDENT VALUERS Unsold Portions of Phase 1, Under Construction Site of Phase 2 and Phases 3D-3E, and Vacant Land Date of valuation: Parcels of Phases 3A-3C, named Baitang One located in Suzhou Industrial Park, Suzhou, Jiangsu 30 September 2012 Province, the People’s Republic of China Developer’s Profit We adopted a developer’s profit of 20% on Development Cost and Administration Fee. The developer’s profit is adopted by referring to our experience for similar kind of development project under the prevailing market conditions and risk exposure. The estimated developer’s profit is RMB395,173,335. Market Value of Phases 3A-3C in existing state Based on the above analysis and taking into account the land profit and deferment, the Market Value of Phases 3A-3C of the Property in existing state by residual approach, as at the Date of Valuation, was RMB576,000,000. Phases 3A-3C by Direct Comparison Approach In the course of our valuation, we have collected three land comparables and summarised the details as follows:- Basic Details Comparable 1 Comparable 2 Comparable 3 SYTG (2012) No.06 SYTG (2012) No.05 SYTG (2011) No.15 Land lot No. ((cid:15350)(cid:17041)(cid:15714)(cid:11891)(2012)06) ((cid:15350)(cid:17041)(cid:15714)(cid:11891)(2012)05) ((cid:15350)(cid:17041)(cid:15714)(cid:11891)(2011)15) North side of South side of North side of Qingcheng Road and Yibang Road and Yangchenghu Address west side of Kecheng East side of Keying Anvenue and East Road Road side of Keneng Road District SIP SIP SIP Site Area (sq.m.) 32,121.00 32,094.00 28,232.00 Gross Floor Area 38,545.20 38,512.80 42,348.00 (sq.m.) Plot Ratio 1.20 1.20 1.50 Land Use Residential Residential Residential / Retail Land Use Term 70 70 70/40 Condition of Sale Transaction Transaction Transaction Transaction Date May-12 May-12 Oct-11 Accommodation Value 2,500 2,500 2,900 (RMB/sq.m.) For the comparables, analysis and adjustment of comparable sales evidence have been made to reflect differences in transaction state, time, location & environment, accessibility, size, shape, land use, layout, existing state, plot ratio, land use term, etc. Valuation Report No. SH/12/931091(b)/GYR/SLZ/SNX/SYK 36/42 V-310