(Hong Kong, 31 Aug, 2002) Kerry Properties Ltd (0683 HK) is pleased to announce the acquisition of Shenzhen Futian Central District Lot No. 7-3 from the Shenzhen City Planning and Land Resources Bureau for a total consideration of approximately HK$177 million. The land cost amounts to an accommodation value of approximately HK$2,350 per square metre. The total development cost is estimated to be approximately HK$774 million.

Kerry Properties will develop Shenzhen Futian Central District Lot No. 7-3 as an office project for lease and for sale. The site occupies a total site area of approximately 10,013 square metres and has a buildable area of approximately 75,000 square metres. It is located to the west of the South Futian Central District, namely the City Business Centre, and is adjacent to the Shenzhen Exhibition Centre. North of the site is Fu Hua Yi Lu, west is Yi Tian Lu, south is Fu Hua Lu and east is Zhong Xin Liu Lu. Arcadia Court, a luxury residential project currently being developed by the Group is located in the northern part of the Futian Central District.

The office development will benefit from its proximity to the Shenzhen Metro Route 1, which is expected to be completed in 2004.

Kerry Properties Limited has long been renowned for its quality developments. We are confident that this will be another distinct development by our company in the PRC and will further enhance the Group's property portfolio in the PRC.

In addition, Kerry Properties signed a Land Use Rights Transfer Agreement on 30 August 2002, to sell Suzhou Gucheng District Lot B4, a residential and commercial site at Ganjiang Road with a site area of approximately 55,118 square feet, to an independent third party for a total consideration of approximately RMB26.6 million. The sale will be completed on 6 October 2002.

For enquiries, please contact:

Mr Chew Fook Aun (Tel: 2967-2390)
Chief Financial Officer

Ms Ivy Cheung (Tel: 2967-2382)
Corporate Communications Officer