Xi'an expands to the east

In March 2007, China Housing acquired the exclusive right to develop and sell 487 acres in a new satellite city of Xi'an. The name of China Housing's development is the Baqiao project, which is located within the new satellite city in the Chan Ba district, six miles east of Xi'an's city center.

The development of the satellite city is proceeding, and the governments of China and Xi'an plan to invest the equivalent of about $7 billion in infrastructure for this area in the next 10 years. Access to the region will be very good, with three major highways and one subway (to be completed by 2013), either finished or under construction today, that will link Baqiao with the Xi'an central city, the international airport, and the Terracotta Army. The construction of a large-scale public wetland park is well underway that will embellish the natural environment of the Baqiao project.

About 900,000 mid-upper income people are expected to settle in the new satellite city. The gross floor area of the satellite city's housing is expected to total about 300 million square feet in 2020.

China Housing's Baqiao Project

China Housing's Baqiao project will be a large mid-upper income residential community with a unique riverside ecological park lifestyle that features high-rise and mid-rise buildings with apartments, shops, and offices, plus The Baqiao Hotel and numerous recreational parks and facilities.

Total acreage for the Baqiao project started with 487 acres in 2007, of which 18.4 acres were sold to another developer later than year. In early 2009, 79 acres were selected for the China Housing and Prax Capital joint venture, leaving about 390 acres that remain to be committed.

Transportation access for the Baqiao community will be outstanding. Two high-speed expressways already connect the Baqiao project to central Xi'an. Only a short walk from the housing units will be a stop on the new subway-and-rail system being constructed that will connect the Baqiao project with central Xi'an to the west, with the international airport to the northwest, and with the world-famous Terracotta Army located 25 kilometers to the northeast. One expressway already connects the Terracotta Army, Baqiao, and the Xi'an city center.

Xi'an's government has been proactive in enhancing the city's international image by hosting world class events like the Euro-Asia Economic Forum and the Formula One Powerboat World Championships. In November 2007, Xi'an hosted the Euro-Asia Economic Forum in the Baqiao district, where high level delegates discussed economic issues related to energy, finance, tourism, and other cooperative industries. The Kempinski Hotel, in the Baqiao district near China Housing's Baqiao project, is the permanent venue for the Euro-Asia Economic Forum that is held every second year. In October 2007, Xi'an hosted the Formula One Powerboat World Championships on the Ba River, also near to China Housing's development site.

China Housing's joint venture for the first 79 acres

In early 2009, China Housing formed a joint venture with Prax Capital Real Estate Holding Limited (Prax Capital) and began developing the first world-class upper-income community within China Housing's Baqiao project. Prax Capital invested $29.3 million cash in the joint venture. The joint venture has acquired the land use rights for the 79 acres and is proceeding with this exciting riverfront community. The world-renowned U.S. architecture and engineering firm of Leo A Daly was selected for the community's architectural planning.

The entire Baqiao project is expected to increase China Housing's value for shareholders.

Located on the western bank of the 500 meter-wide Ba River, the 79-acre site is across the river from western China's largest wetland park, which covers 3,300 acres. This wetland park will host the 2011 International Horticultural Exposition that will draw nature enthusiasts from around the world. In addition, the Chan Ba commercial and financial centers are being constructed nearby.

Of the 79 acres in the joint venture project, about 49 acres will be devoted to housing, with the remaining 30 acres dedicated to riverfront walks, green land and sport parks, and infrastructure, including streets and sidewalks, which have already been funded by Xi'an's Baqiao District government.

Construction on the 79-acre parcel is expected to start in the second quarter of 2009, with housing customers beginning to sign pre-sales agreements starting in the fourth quarter 2009. The construction will be completed in four phases, with the final buildings and units in the 79-acre complex expected to be finished in 2014.

The gross floor area on this 79-acre site will be about 650,000 square meters (about 7 million square feet). Residences will total about 95 percent of that gross floor area, commercial space will use about 1.6 percent, and public areas and building infrastructure will use the remaining 3.4 percent.