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.

(Incorporated in Hong Kong with limited liability)

(Stock Code: 00123) ANNOUNCEMENT SECONDARY PLACEMENT OF UNITS IN YUEXIU REIT

This is a voluntary announcement made by Yuexiu Property Company Limited (越秀地產股份有限公司) (the "Company", and together with its subsidiaries, the "Group").

The Board announces that as at the date of this announcement, the Company owns (directly and indirectly) an aggregate of 1,156,817,137 units ("Units") in Yuexiu Real Estate Investment Trust ("Yuexiu REIT"), representing approximately 39.40% of the total number of Units in issue. Among such 1,156,817,137 Units, 128,092,901 Units (the "Issued Manager Fee Units") were previously issued as payment of the base fee and variable fee components of the management fee payable by Yuexiu REIT to Yuexiu REIT Asset Management Limited (in its capacity as manager of Yuexiu REIT) (the "REIT Manager") for the period from 1 July 2012 to 31 December 2016. As designated by the REIT Manager, all of the Issued Manager Fee Units were issued to and are presently held by Yuexiu International Investment Limited ("YXII"), a wholly-owned subsidiary of the Company.

The Board announces that on 14 March 2017, the Company and YXII entered into a placement agreement with The Hongkong and Shanghai Banking Corporation Limited and Morgan Stanley & Co. International plc (collectively, the "Placing Agents"), pursuant to which YXII agreed to sell, and the Placing Agents agreed subject to certain conditions to procure placees to purchase, failing which the Placing Agents will purchase, all of the Issued Manager Fee Units for a purchase price of HK$4.34 per Issued Manager Fee Unit (representing a discount of approximately 6.47% to the closing price of the Units on 13 March 2017) ("Proposed Secondary Placement"). To the best of the knowledge, information and belief of the directors' of the Company having made reasonable enquiries, the placees in respect of the Proposed Secondary Placement are third parties independent of the Company.

The gross proceeds from the Proposed Secondary Placement are estimated to be approximately HK$555,923,190. The net proceeds from the Proposed Secondary Placement will be used for general working capital purposes.

As the Proposed Secondary Placement may or may not complete, shareholders and potential investors of the Company should exercise caution when dealing or investing in the shares of the Company.

Hong Kong, 14 March 2017

By Order of the Board

Yuexiu Property Company Limited Yu Tat Fung

Company Secretary

As at the date of this announcement, the Board comprises:

Executive Directors: ZHANG Zhaoxing (Chairman), ZHU Chunxiu, LIN Zhaoyuan,LI

Feng and OU Junming

Independent Non-executive Directors:

YU Lup Fat Joseph, LEE Ka Lun and LAU Hon Chuen Ambrose

Yuexiu Property Co. Ltd. published this content on 14 March 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 13 March 2017 22:33:07 UTC.

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