The Henley Group -aboutus

As we look forward to the New Year, it is time again to update you on Intellectual Property's news and progress. It was a busy year for us all and what follows are some key features of the last few months.

October and November saw the launch of three new developments from Intellectual Property. First, was the introduction of our Eko Park project in Krakow, Poland, followed closely by the release of Hampshire Residences, our second development in Kuala Lumpur, Malaysia, and finally, due to strong interest, our first venture into the Vietnamese market, River Garden in Ho Chi Minh City.

Below are the highlights of each of these projects:

Eko Park - Krakow, Poland

Anticipated completion: End 2008

Developer: Salwator Capital Group

75 units (6 now available)

Studio, 1, 2 and 3 bedroom units

Prices from 84,000 USD (652,430 HKD)

Freehold ownership

Private, secure and family-orientated facility with parking and good transport links

Poland is the largest economy in Central Europe, one of the youngest countries in Europe and is expected to join the EU imminently. The fundamentals look positive for the Polish property market with a housing shortage of approximately 1.5 million and 18% of owned property currently mortgaged. Property price growth is inevitable with 105% LTV loans now available to Polish borrowers. Focusing on Krakow, recent data has shown that property prices have increased by a massive 27% in 2005, compared to just 10% in Warsaw. Many are predicting long term growth of 13% per annum.

Hampshire Residences - Kuala Lumpur, Malaysia

Anticipated Completion: 3Q 2008

Developer: Zelan Development Sdn Bhd, a member of Tronoh Consolidated Malaysia Bhd and Capitaland

52 units (24 now available)

1, 2, 3, and 4 bedroom units

Prices from RM595,436 to RM2,151,749 (USD163,256 - USD589,991)

Freehold ownership

All units have air conditioning and come fully furnished

Facilities: landscaped gardens, swimming pool with poolside BBQ area, gym, sauna, jacuzzi, function room, cafeteria, children's play area, car park, private lobby for larger units.

Malaysia is in the heart of South East Asia, and is a manufacturing hub of the East. In 2005 annual growth in GDP was 5.3% and direct investment inflows rose by 6.4%. Rapid urbanization has been evident over the last 3 decades, and it is predicted that each year 588,000 people will be drawn to the urban areas generating a huge demand in housing. There is a low house ownership level and a young population in Malaysia which bodes well for the property market. This is also true of the low interest rates, rising incomes and longer repayment periods resulting in affordable housing levels.

River Garden - Ho Chi Minh City, Vietnam

5% discount available exclusively to Intellectual Property buyers

Anticipated Completion: 30th April 2008

Developer: Indochina Capital Corporation

36 units (24 now available)

2 and 3 bedroom units available

Prices from 134,320 USD to 171,483 USD

Leasehold to foreigners (50 years and then renewable)

The development is located in District 2 of HCMC, a 10-15 minute commute from the CBD

Facilities: outdoor swimming pool, tennis court, badminton court, basketball court, handball court, children's playground, open restaurant, bar-café, bowling, gym & health club, steam bath & sauna, beauty salon and multi-purpose hall.

Vietnam is located in South East Asia and mirrors China twenty years ago, without the pitfalls. It was recently accepted as the WTO's 150th member, largely due to the economic reforms, initiated in the late 1980s that stabilized the economy and yielded high levels of income growth, and its enthusiasm to build on international relations. GDP grew by 8.4% in 2005 with Vietnam boasting the second highest growth in East Asia, exceeded only by China. Trade swelled by 18.2% in 2005 to reach $69 billion. 70% of a growing population is at a working age and it has been predicted that by 2030 almost half of the Vietnamese population will live in urban areas.

Thank you for the fantastic reception to these projects, the take-up has been overwhelming.

It has been a tremendous year for Intellectual Property and we plan to continue this success into 2007. Two imminent projects we are looking to launch are Romania, a new market for Intellectual Property and featured as the Property of the Month in this issue, and also our second release in Poland. Additionally, we will continue to seek markets that we believe offer value, such as Taiwan, Vietnam and possibly Japan. We will be in touch!