Hotel Fortuna (Hong Kong) is an investment holding company and its principal asset is its 100% ownership in Hotel Fortuna, which is a PRC company and owns a hotel situated at Le Cong Zhen, Shun De District, Foshan, Guangdong Province, the PRC.

The aggregate consideration for the Sales Shares and Sales Loans is HK$550,000,000, of which HK$149,483,000 represents the Sales Shares Consideration (subject to adjustments) and HK$400,517,000 represents the Sales Loans Consideration (subject to adjustments). Upon completion, Hotel Fortuna (Hong Kong) will become a direct wholly-owned subsidiary of the Company and its post-acquisition financial results will be consolidated into the Group’s consolidated financial statements.

Mr. Stephen Chu, Executive Chairman of Capital Estate Limited said, “Expanding the property portfolio is always one important strategy that we adopt to facilitate growth for the Group. We believe the acquisition will help improve the Group’s returns and share value on the back of the outstanding development of Foshan’s tourism industry, the hotel’s prestigious location in the city, as well as the improvement in business performance it has made in the past.”

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About Capital Estate Limited (SEHK: 0193)

Capital Estate Limited is a Hong Kong listed property and investment holding company. It is principally engaged in property rental, financial investment, property development, property sales and investments.