Acquisition of Land in Shanghai

HONGKONG LAND HOLDINGS LIMITED

DISCLOSEABLE TRANSACTION

ACQUISITION OF LAND IN SHANGHAI

This announcement contains Inside Information.

THE ACQUISITION

Hongkong Land Holdings Limited has secured a prime 23.1 hectare mixed-use site on the West Bund of Shanghai from the Government via auction on 20th February 2020 for a consideration of RMB31,050,000,000 (equivalent to approximately US$4.4 billion).

The acquisition provides the Group with an attractive opportunity to develop and operate a commercial complex of scale in a prime location in Shanghai, the predominant commercial hub of the Chinese mainland. The transaction is in line with the Group's long-standing strategy to acquire prime sites in key gateway cities across Asia.

The development of the Land will be in multiple phases and is expected to complete by 2027.  The Group has extensive experience in developing large commercial projects for long term investment in Greater China and Southeast Asia.  Post completion, the project is expected to provide the Group with a stable stream of recurring earnings.  The Board believes that the acquisition is in the best interests of the Group.

INFORMATION ON THE LAND

The Land is located alongside the Huangpu River South Extension area in the Xuhui District of Shanghai (collectively known as the land for the West Bund Project, with a total site area of 231,300 square metres and an accountable gross floor area of 1,087,050 square metres).  The detailed location of the Land is set out below.  The Land will be used primarily for Grade-A office, retail, residential and hotel purposes. The term of the land use rights is 40 years for retail and hotel purposes, 50 years for office purposes, and 70 years for residential purposes.  Approximately 24% of the accountable gross floor area may be developed for sale in accordance with the land grant.

CONSIDERATION

The land cost is RMB31,050,000,000 (equivalent to approximately US$4.4 billion) and will be paid in instalments during 2020.

The Group is considering a range of funding options without recourse to shareholders, including internal resources and external funding (including, but not limited to, pre-sales, cooperation with strategic partners, and debt, subject to any applicable regulatory approvals).  The Group has sufficient liquidity to fund the land cost and does not intend to seek funding from shareholders.

ABOUT HONGKONG LAND GROUP

Hongkong Land is a major listed property investment, management and development group.  The Group owns and manages more than 850,000 sq. m. of prime office and luxury retail property in key Asian cities, principally in Hong Kong, Singapore, Beijing and Jakarta.  The Group also has a number of high quality residential, commercial and mixed-use projects under development in cities across Greater China and Southeast Asia.  In Singapore, its subsidiary, MCL Land, is a well-established residential developer.  Hongkong Land Holdings Limited is incorporated in Bermuda and has a standard listing on the London Stock Exchange, with secondary listings in Bermuda and Singapore.  The Group's assets and investments are managed from Hong Kong by Hongkong Land Limited. Hongkong Land is a member of the Jardine Matheson Group.

DEFINITIONS

For reference, an exchange rate of US$1.00: RMB7.01 has been used for converting the land consideration into US dollars.

Jonathan Lloyd, Jardine Matheson Limited

For and on behalf of Hongkong Land Holdings Limited

20th February 2020

www.hkland.com