03 Aug 2011

Tiong Seng Successfully Bid 85,510 sq m Residential Site in Suzhou for RMB382 Million

Mainboard‐listed construction group and property developer, Tiong Seng Holdings Limited (長成控股) ("Tiong Seng", together with its subsidiaries, "the Group"), today announced that its subsidiary Chang De Investment Private Limited ("Chang De") was the successful bidder for a site in Suzhou, PRC at a cost of RMB382 million for a new high‐end property development project. Transfer of the land use rights for the development of the residential site is expected towards end of August 2011, upon full payment of the purchase consideration.

Designated for residential purposes, the site is located in Suzhou New District Xu Shu Guan Development Zone (浒墅关开发区). Tiong Seng intends to develop high‐end low rise properties and luxury condominiums on the plot, which has a 70‐year tenure. When completed, the development is expected to yield about 880 residential units.

Located at the foot of Yangshan Mountain National Forest Reserve (阳山国家森林公园), the site is not only near a popular tourist attraction in Suzhou but is also within an exclusive area of Yangshan New Town (阳山新城). Close to amenities which will be developed over the next 5 years, the new town forms part of the masterplan by the Suzhou New District (苏州高新区) authorities to develop and enhance the living environment in Xu Shu Guan sub‐area. There are also plans to construct a Mass Rapid Transit and three Light Rail Transit lines to serve the sub‐area.

Mr Pek Lian Guan, CEO of Tiong Seng Holdings Limited said: "This will be our third development in Suzhou, our last project being back in 2006. We are extremely happy to have the opportunity to work on another prestigious development in Suzhou. This development will allow us to incorporate our quality, sustainability and safety standards and construction technologies in the design and construction of the project. We look forward to the commencement of this project later this year."

Tiong Seng first ventured into the PRC in 1994, when it was a passive investor in certain property development projects in Suzhou. In 2001, the Group constructed the five‐star Meritus Hotel in Shantou which received the Construction Excellence Award, and in 2002, it commenced Suzhou Huisheng Yuan (苏州汇盛苑), its first property development project, in Suzhou. In 2004, the Group developed Wenchang Broadway (文昌百汇商业步行街), a shopping centre in Yangzhou followed by Suzhou XuTong Commercial Building (苏州浒通商业百汇), another commercial project in Suzhou in 2006. In 2006, Tiong Seng ventured into Tianjin with the development of Tianmen Jinwan building (天门金湾大厦),a mixed‐residential commercial development.

"This latest acquisition in Suzhou is in line with the objectives of our niche property development business. Notwithstanding the PRC government's recent cooling measures which are designed to curb short‐term speculation, we believe that the increasing rate of urbanisation will likely fuel long‐ term demand for quality housing in China. As such, Tiong Seng will continue to focus on property development opportunites in various second‐ and third‐tier cities in the PRC such as Tianjin and Suzhou." said Mr Pek.

Ongoing Property Development Projects

	Tianjin French Barracks Project (紫竹林法国兵营项目) The redevelopment of a conserved French Barracks into a commercial establishment in Tianjin City.
	The Equinox, Dagang, Tianjin (艾维诺森林) The development of low density residential housing in Dagang in Tianjin Binhai New District. The site area is about 32.5 hectares. Phase 1 is expected to be launched for sale in the third quarter of 2011. The project is expected to be completed by 2015.
	Park Tower, Tianjin Eco‐city (天津生态城景杉苑) The development of 3 plots of land in Tianjin Eco‐city Start Up Area as an investor and a construction manager. The total site area spans about 39 hectares. The construction and sale of units for the first plot, Park Tower , has commenced, and the project is expected to completed by 2015.
	City Residence, Cangzhou, HeBei Province (沧州阳光国际) A mixed development with both condominium and commercial units. Phase 1 of the project has been completed and units are currently in the process of being handed over to buyers. The project is expected to be completed by 2014.

About Tiong Seng Holdings
Tiong Seng is principally engaged in building construction and civil engineering in Singapore, and property development in the PRC. With an established track record of over 50 years, Tiong Seng is one of the leading building construction and civil engineering contractors in Singapore. It holds the highest grading of A1 from the Building Construction Authority of Singapore (BCA) for both general building and civil engineering, which qualifies the Group to undertake public sector construction projects with unlimited contract value.

Tiong Seng's property development business focuses on developing residential and commercial projects in various second‐ and third‐tier cities in the PRC. The Group has successfully developed properties in Tianjin, Suzhou and Yangzhou and it currently has four on‐going projects in the Bohai Economic Rim, which is one of the main economic zones in the PRC.