Overseas Chinese Town (Asia) Holdings (HKG:3366) (OCT (Asia)) announced that it has agreed to make capital contribution of RMB2.232 billion to Overseas Chinese Town (Shanghai) Land Company Limited (OCT Shanghai Land) to increase the registered capital of OCT Shanghai Land to RMB3.03 billion. The equity interest of OCT Shanghai Land would be owned as to 50.5% by OCT (Asia) and as to 49.5% by Shenzhen Overseas Chinese Town Company Limited (OCT Ltd.), the controlling shareholder of OCT (Asia), upon completion of the contribution.

OCT (Asia) also said that it entered into a loan agreement with OCT Ltd. pursuant to which OCT Ltd. agreed to lend RMB900 million to OCT (Aisa) which will be used to finance the RMB2.232 billion capital injection.

Trading in the shares of OCT (Asia) will resume this morning.

OCT Shanghai Land is currently engaged in the Suhewan project in Shanghai and held three pieces of land in the north coast of Suzhou River, Shanghai, the PRC. The Suhewan project is a comprehensive commercial project possessing distinctive features, which will include highend residential properties, low-rise residential by the shore, apartments, boutique business premises and boutique hotels upon completion of the constructions.

The Suhewan project is located in the city centre of Shanghai with a total floor area (above ground) of approximately 280,000 sqm upon the completion of its construction. The Suhewan project will be constructed and completed in phases such that all necessary permits will be obtained for the construction and sale of properties. It is contemplated that a majority of the properties in the Suhewan project will be sold, starting in 2012 and thereby deriving revenue to OCT Shanghai Land in the same year. The development of the Suhewan project is expected to complete in 2016, and a small portion of the properties will be held by OCT Shanghai Land, thereby bringing sustainable income in the future.