Landsea Green Properties Collaborates with CITIC Capital to Develop Properties in Changning District of Shanghai - Consistent implementation of joint development model to further promote light-asset strategy

Landsea Green Properties Collaborates with CITIC Capital to Develop Properties in Changning District of Shanghai Consistent implementation of joint development model to further promote light-asset strategy

Hong Kong, October 13, 2015 - Landsea Green Properties Co., Ltd., ("Landsea Green Properties" or "the Company", stock code: 00106), China's leading property developer and operator with green technology, announced that the Company entered into an agreement with a subsidiary of CITIC Capital, pursuant to which both parties will cooperate to develop properties (the "Properties") in the Changning District of Shanghai in a building rehabilitation project (the "Project") with the aim of promoting the Company's asset-light strategy. Upon completion of the transfer, the Project will be owned as to 61.54% by CITIC Capital and as to 38.46% by the Company.

The Properties were acquired by Landsea Green Properties at a consideration of approximately RMB540 million this July, marking the Company's first time to participate in the redevelopment of old buildings. The Properties include 75 residential units, car parks and public facilities. They are located at No. 25, Alley 770, Qingxi Road in the Changning District of Shanghai, a traditional low density, high-end community. The Properties were completed in 2000 and have a site area of 13,433 square meters and a gross floor area of 15,787 square meters. The Company plans to upgrade and refurbish the Properties and then sell them in parts. The main sources of the capital of the Project are shareholders' loans from the Company and CITIC Capital, third party bridge loan and bank loan.

Mr. Tian Ming, Executive Director and Chairman of Landsea Green Properties, said, "The Company's cooperation with CITIC Capital in the inaugural old buildings redevelopment project is not only an attempt to engage in a new business model apart from property development on acquired land, but also the proof of a steady step that the Company has taken in promoting its asset-light strategy. The Company has implemented the development strategy of "asset-light and profit diversification" since last year, including leveraging the unique advantages of its technology and products to engage in joint development, projects with minority interests, technology systems, brand output, etc. As a result, the Company has benefited from returns on investment 2 in conventional real estate, as well as from providing technology services, brand output and management."

"Relying on its years of expertise in green technology real estate, the Company will continue to look for opportunities to either enter into equity partnerships with other organizations such as developers and financial institutions, or to participate in projects developed by other developers, with the aim of significantly increasing the proportion of service revenue. We believe these moves will help us dilute risk in a turbulent market and improve the Company's capability in the vertical integration of investment, development, redevelopment and operation. These moves will also help the Company explore new profit sources and create higher value for shareholders," Mr. Tian added.