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Jade City International Limited, a wholly owned subsidiary of the Company, was successful in the tendering for the grant of a lot of land for the development of a home ownership project in Tseung Kwan O under the Private Sector Participation Scheme ("PSPS") at a premium of HK$509,288,000.

The Directors have been notified by the Lands Department of the Government of the Hong Kong Special Administrative Region on 10 July 1998 that the tender submitted by Jade City for the grant of the lot of land described hereunder for the development of a home ownership project under the PSPS was accepted by the Government.

Location	:	Tseung Kwan O Town Lot No. 62, Area 65A, Tsueng Kwan O, Sai Kung, New Territories
Site area	:	Approximately 25,101 square metres
Term	:	Fifty years from the date of the Memorandum of Agreement to be executed between the Government and Jade City which is expected to be on or before 24 July 1998

Details of the PSPS Development

Gross floor area of
Residential towers	:	Approximately 179,390 square metres
Commercial area	:	Approximately 2,450 square metres
No. of parking spaces	:	About 610
Development period	:	Around 30 months from the date of the Memorandum of  Agreement
Premium	:	HK$509,288,000
Terms of payment	:	10 % of the Premium amounting to HK$50,928,800 was paid upon acceptance of the tender, and the 90% balance of the Premium of HK$458,359,200 will be payable in cash on or before 7 August 1998.
Financing for the Development	:	Own resources and bank borrowings
Guaranteed buy-back price of residential area	:	HK$16,400 per square metre of saleable area which is approximately 86% of gross floor area

Reason for the acquisition

The Directors consider that PSPS housing projects are attractive and, with its financial resources and construction capabilities, the Group should be able to capitalise on this market. The Directors believe the PSPS Development could make positive contribution to the Group's profitability in the next few years.

General

The Company is an investment holding company. Its subsidiaries are engaged in construction and construction materials businesses.

The Company will send to its shareholders a circular containing further details of the transaction as soon as practicable.

By Order of the Board
Choi Yuk Keung, Lawrence
Managing Director

Hong Kong, 13 July 1998