Hong Kong, 8 November 2010 - Treasury Holdings Real Estate Pte Ltd, Trustee Manager of Treasury China Trust (“TCT”), today announced the signing of a Strategic Partnership Agreement with Ginwa Investment Co., Ltd. (“Ginwa Group” “金花集团”) to focus on opportunities in the commercial real estate market emerging in the, Shaanxi (陕西省) Province of central and western China. With an initial focus on the Shaanxi Province capital of Xi’an, this agreement marks another important milestone in TCT’s commitment to achieve sustainable and accretive balance sheet growth through geographic expansion and strategic acquisitions with a specific focus on the retail sector.

The Ginwa Group has been established in Xi’an for 20 years and provides TCT with a strong foundation for entry into China’s largely untapped central and western Chinese commercial property market.

In 2000, Ginwa Group established China Golden Development Holdings Ltd, a company listed on the Hong Kong Stock Exchange (ticker symbol 00162.hk), to own and operate department stores in the Xi’an market, which trade under the brand Century Ginwa (“Century Ginwa” 世纪金花), now a local household name with six outlets in operation and 2 under construction. As a leading conglomerate in the region with diversified business interests across numerous sectors, Ginwa Group also operates Ginwa Enterprise Group Inc, a Shanghai listed company that manufactures pharmaceutical products out of its Xi’an base.

The Chairman of Ginwa Group, Mr Wu Yi Jian, is a former Chinese Entrepreneur of the Year and is currently a member of the People’s Political Consultative Committee and Vice-Chairman of the National Association of Industrialists and Businessmen, who consults regularly with the government on matters of China’s burgeoning private sector.

The long-term objective of the partnership is to secure a strong platform for managing and developing commercial real estate initially in Xi’an with ambitions for expansion into the broader Shaanxi Province and beyond. TCT will have majority control including responsibility for design and management oversight.

Mr Wu, expressed his strong commitment to the alliance, “Ginwa sees an exceptional opportunity to expand its commercial real estate operations by joining forces with such a well-respected investment partner as TCT, a company with a solid international background and vast experience in the China commercial property market. The Western China market is known for its desire to keep pace with China’s fast growing coastal cities and this partnership provides a genuine opportunity for for TCT and the Ginwa Group to secure a market leadership position.”

Xi'an, formerly an imperial capital during several of China’s most significant dynasties, is now a major gateway city to the vast opportunities within central and western China, under the Chinese government’s ‘Go West’ policy enacted in 1999. Also known internationally as the home of the Terracotta Warriors, Xi’an is a global tourism destination in its own right, which was recently reinforced by the decision of the Chinese central government to officially proclaim the city as one of only five in China accorded official international city status

Retail sales in Xi’an has continued to grow exponentially over recent years and recorded 19.7% y-o-y growth in year 2009, achieving RMB138.1 billion in turnover. However, further market growth is inhibited by the limited availability of quality retail space, constructed and managed to international grade specifications that can cater for multinational retailers.

Capitalizing on the momentum gained through the strategic alliance formed with Qindao’s Trio group in August of this year to expand into Shandong Province’s commercial real estate market, the partnership formed with the Ginwa Group further reinforces TCT’s long term commitment to the China market. It also solidifies TCT's strategic approach to the formation of value-add partnerships to expand its balance sheet through accretive acquisitions, whilst providing TCT unitholders with geographic diversity and a lower cost base for strong income yield growth.

CEO Richard David commented, “Xi’an is an exciting market for commercial real estate investment and development, and our partnership with the Ginwa Group combines our key strengths in the delivery of a significant pipeline of quality transactions that will achieve growth in both net asset value and net operating income. In the Ginwa Group we have identified a partner of considerable experience in the region and more importantly, as a successful department store operator in their own right, Ginwa provides direct access to the retail sector, TCT’s current preferred asset class for investment.”