Beijing Capital to get land compensation fee from SOHO China

Oct. 16, 2009 (China Knowledge) - Beijing Capital Development Co Ltd<600376> announced that a wholly-owned subsidiary has signed an agreement with two subsidiaries of SOHO China Ltd<0410> on the compensation fee of a land parcel in Chaoyang District.

The parcel, which is located in Chaoyang District, Beijing, was acquired by the two subsidiaries controlled by SOHO China for RMB 4 billion on Aug. 20, 2009.

According to a statement filed with the Shanghai Stock Exchange, Beijing Capital Development will receive a one-time compensation fee of RMB 1.26 billion for the land transfer, which is expected to be completed by Mar. 15, 2010.

SOHO China will pay RMB 251.69 million, 20% of total land compensation, to Beijing Capital Development within three working days after the signing of the agreement, and will pay another 20% by the end of Nov. 10, 2009.

The compensation fee will not be reflected in the 2009 financial report, according to Beijing Capital Development.