Zall Wins Bid for Dingxiang Lake New Town Plot in Yuhong District, Shenyang for RMB827 Million

Develops "Shenyang Salon" into a Landmark Commercial and Cultural Center in North-eastern China

HONG KONG, Oct. 13, 2011 /PRNewswire-Asia/ -- Zall Development (Cayman) Holding Co., Ltd. ("Zall Development" or the "Group"; SEHK stock code: 2098), a leading developer and operator of large-scale, consumer product-focused wholesale shopping malls and commercial properties in China, announced today it has won a bid for a plot of land in Dingxiang Lake New Town, Yuhong District, Shenyang at a consideration of RMB827 million. The acquisition is expected to be financed by internal resources. The land use rights of the site, which has a total area of about 150,000 sq.m., will be signed over to the Group shortly.

The Group plans to develop a high-end integrated complex "Shenyang Salon" on the site. The complex will offer green housing, small office home office facilities (SOHO), hotel, shopping, arts and culture, theatre and parks under one roof. When completed, Shenyang Salon is set to be a landmark in north-eastern China, representing the best that Shenyang has to offer in arts and culture. The project will be developed in two phases. Construction of the first phase is expected to start in March next year and to be completed in December, offering a total gross floor area of about 300,000 sq.m.

Mr. Yan Zhi, Chairman and CEO of Zall Development, said, "The Chinese government's plan to revitalize north-eastern China has been in place for more than seven years. The region's development in commerce and logistics has flourished and is now in an important phase. As a gateway to the provinces of Liaoning, Jilin, and Heilongjiang in north-eastern China, Shenyang plays a key strategic role in the Group's national expansion strategy. To help turn the Group's national plan into reality, we are actively rolling out our unique North Hankou large-scale consumer goods wholesale market in Wuhan and the 'Urban Salon' business model to other parts of China, including the northern, north-eastern, south-western and north-western regions. Zall's 'Urban Salon' model provides a multi-structure, mixed-use cultural and exhibition center that best serves the needs of Shenyang's tertiary industry. Furthermore, along with development projects already planned for Shenyang, namely the Northeastern China (Shenyang) International Trade Center, the No. 1 Enterprise Community Northeastern China Headquarters Business Park as well as Northeastern Logistic Enterprise Community, the construction of 'Shenyang Salon' will further enhance Zall Development's offerings in the sector in Shenyang and consolidate our competitive advantages there."

The planned "Shenyang Salon" is adjacent to the Shenyang City No.2 Ring Line in Yuhong District, Shenyang, close to the downtown area. It will be located next to the largest man-made lake in China, the Dingxiang Lake, which boasts an excellent ecological environment. The area is regarded as one of the "golden sites" in Shenyang with huge development potential. The local government is actively developing the Dingxiang Lake New Town into an eco-urban area, providing strong support on its commercial development and supporting infrastructure.

About Zall Development

Zall Development is a leading developer and operator of large-scale, consumer product-focused wholesale shopping malls, as well as commercial space provider, in China. Headquartered in Wuhan, Hubei province, Zall Development primarily engages in selling and leasing consumer product-focused wholesale market properties and other commercial spaces. The Company's major clients include suppliers, manufacturers, dealers and other small to medium sized local wholesale enterprises. Besides developing and operating wholesale market properties, Zall Development offers a comprehensive range of integrated logistics and trading facilities and services.

Zall Development's major projects and land bank are mainly located in Wuhan, Xiangyang and Tianjin. Its property portfolio comprises wholesale market properties and commercial properties. The Company's flagship project, the North Hankou International Trade Center ("North Hankou"), is the largest consumer products interstate-trading platform in China. According to Savills, North Hankou is the largest consumer product focused wholesale market in terms of planned GFA with land use right obtained in Central China, comprising more than ten wholesale shopping malls that respectively focus on leather footwear, small household items, hotel products and supplies, cotton knitwear, apparel, home textiles and home appliances, international brands, general products, gift and accessories, and automobiles, just to name a few.

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