Hongkong Land And Armani Group Sign Flagship Stores at 11 Chater Road

HONG KONG, 7th June 2001 -- Hongkong Land today announced that it has signed a lease with the Armani Group, the leading Italian fashion and luxury goods group, for two flagship stores, at Hongkong Land's 11 Chater Road development. The lease covers about 22,000 square feet net.

The stores, one Giorgio Armani and the other Emporio Armani, are both two-level and each covers around 11,000 square feet net. The Giorgio Armani store has pavement frontage on Chater Road, while the Emporio Armani store will occupy the first and second floors on the Pedder Street side. Both stores have direct access to the re-opened pedestrian bridge network that links the building to other Hongkong Land properties and key locations in the district.

This will be the first time that the Armani Group has chosen to locate both a Giorgio Armani and Emporio Armani store in a single building. It is made possible because of 11 Chater Road's unique design concepts and its geographic location. The retail podium of the building has different architectural features on both Chater Road and Pedder Street. The contemporary frontage on Chater Road is well suited to the sophisticated philosophy of Giorgio Armani, while the heavy traffic flow and critical mass on the bridge level complements Emporio Armani's more accessible image. Both stores are due to open in September 2002. In the meantime, the two companies are also exploring opportunities to introduce other Armani lifestyle brands, such as Emporio Armani Caffe, cosmetics, home interior products etc, to the building.

Announcing the agreement, Hongkong Land Executive Director, Mr. Ian Hawksworth said, "Mr Armani's position as a world leader in fashion is uncontested, and his commitment to 11 Chater Road underlines the promise of the fabulous new shopping areas in our latest building. The lease is also testimony to Hongkong Land's track record of attracting high-quality tenants, based on their belief in the strengths of our existing portfolio and our ongoing commitment to invest in our properties to benefit our tenants."

He added, "We are also in discussions with a number of other leading brands, which bodes extremely well for 11 Chater Road. The tenant mix in the retail areas will present a most attractive offer to shoppers in Central and will complement Hongkong Land's other retail destinations - The Landmark, Prince's Building and Alexandra House. When the building opens, the upgraded bridge walkways, managed by Hongkong Land and inter-linking all these properties and other key locations, will be reconnected to enhance ease of passage.

"The development will be a striking new landmark in the heart of Central that will offer a comprehensive range of the latest in tenant facilities and services. The new building will provide office tenants with the ultimate in flexibility to model their premises through making the space available on a 'Shell and Core' basis. In addition, because a number of retail tenants, such as the Armani Group, have been prepared to commit early, we can work with them to model the structure exactly to suit the design need of both parties."

11 Chater Road is Hongkong Land's latest office and retail development. The 483,500 square feet net building comprises 438,500 square feet of offices and 45,000 square feet of retail space. It is located at the intersection of Chater Road, Pedder Street and Des Voeux Road Central. The development is close to the MTR and forms a vital part of Hongkong Land's pedestrian bridge network that links 12 of the Company's buildings and provides direct access to many of Central's major establishments, banks, other properties and to the Airport Express and Star Ferry.

For further information, please contact:
Hongkong Land
Helen Chiu
Tel: 2842 8222

Notes to Editor

About Hongkong Land
Hongkong Land is a leading property and infrastructure investment, management and development group. The Company owns and manages some 5 million sq. ft of prime office and retail space in the heart of Hong Kong's Central business district. It is active primarily in the Hong Kong SAR, Mainland China and Singapore, and has a portfolio of property and infrastructure interests in other Asian cities. Hongkong Land employs some 600 people, has its primary share listing in London, and at end of 2000, reported shareholders' funds in excess of US$6 billion.

About The Armani Group
The Armani Group is one of the leading fashion and design groups in the world today. It designs, manufactures, distributes and retails fashion products, including apparel, accessories, eyewear, watches, home interior products, fragrances and cosmetics under a range of lifestyle brand names: Giorgio Armani, Giorgio Armani Accessories, Giorgio Armani Classico, Giorgio Armani Parfums, Armani Collezioni, Mani, Emporio Armani Jeans, Emporio Armani Fragrances, Emporio Armani Underwear, A/X Armani Exchange, Armani Junior and Armani Casa. The Group's direct-controlled retail network currently comprises 48 Giorgio Armani boutiques, one Giorgio Armani Accessories store, eight Armani Collezioni stores, 119 Emporio Armani stores, 60 A/X Armani Exchange Stores, six Armani Jeans stores, three Armani Junior stores, and one Armani Casa store in 33 countries.

Computer Rendering of 11 Chater Road - Retail Podium Facade facing Chater Road in Central:
Hongkong Land's latest development in Central, 11 Chater Road, offers 45,000 net sq. ft. of first class retail space and 438,500 net sq. ft. of prime office space. Armani Group, the leading Italian fashion and luxury goods group, has signed a lease for two flagship stores which occupy about 22,000 net sq. ft. at the development.