Shimao Property : Issuance of Additional US$150 Million 4.75% Senior Notes Due 2022

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

This announcement does not constitute an offer to sell or the solicitation of an offer to buy any securities in the United States or any other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The securities referred to herein will not be registered under the Securities Act, and may not be offered or sold in the United States except pursuant to an exemption from, or a transaction not subject to, the registration requirements of the Securities Act. Any public offering of securities to be made in the United States will be made by means of a prospectus. Such prospectus will contain detailed information about the company making the offer and its management and financial statements. The Company does not intend to make any public offering of securities in the United States.

(incorporated in the Cayman Islands with limited liability)

Reference is made to the announcement (the "Announcement") of the Company dated 23 June 2017 in relation to the issuance of US$450 million 4.75% senior notes (the "Original Notes"). Unless otherwise defined, capitalised terms used herein have the same meanings as those defined in the Announcement.

On 27 June 2017 (after trading hours), the Company, the Subsidiary Guarantors and Morgan Stanley entered into an agreement for the additional issue of US$150 million 4.75% senior notes due 2022 (the "Upsize Notes" and, together with the Original Notes, the "Notes"). The Upsize Notes will be issued on the same date as, and consolidated and form a single series with, the Original Notes.

The terms of the Upsize Notes are identical as the terms of the Original Notes as detailed in the Announcement, except for the following:

1. Principal amount: US$150 million

2. Offering Price: 100.5% of the principal amount of the Upsize Notes

The Company intends to use the net proceeds from the issue of the Upsize Notes outside the PRC to refinance certain existing indebtedness and for business development and other general corporate purposes. The Company may adjust the foregoing plans in response to changing market conditions and thus, reallocate the use of proceeds.

An approval in-principle has been received for the listing and quotation of the Original Notes on the SGX-ST. The Company will seek a listing of the Upsize Notes on the SGX-ST. Admission to the official list of the SGX-ST and quotation of the Notes on the SGX-ST is not to be taken as an indication of the merits of the Company, the Subsidiary Guarantors or any other subsidiary or associated company of the Company, the Notes or the Subsidiary Guarantees. SGX-ST assumes no responsibility for the correctness of any of the statements made or opinions expressed or reports contained in this announcement. No listing of the Notes has been or will be sought in Hong Kong.

Hong Kong, 28 June 2017

On behalf of the Board

Chairman

As at the date of this announcement, the Board comprises five executive directors, namely, Mr. Hui Wing Mau (Chairman), Mr. Hui Sai Tan, Jason (Vice Chairman), Ms. Tang Fei, Mr. Liao Lujiang and Mr. Kan Naigui; one non-executive director, namely, Mr. Liu Sai Fei; and three independent non-executive directors, namely, Ms. Kan Lai Kuen, Alice, Mr. Lu Hong Bing and Mr. Lam Ching Kam.