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Treasury China Trust Annual Report 2010 84

NOTES TO THE FINANCIAL STATEMENTS

Period from 19 May 2010 (date of constitution) to 31 December 2010

31 Subsequent events

(a) On 25 November 2010, the Trust entered into a conditional sale and purchase agreement (“S&P”) to acquire 55% equity interest in Sanyang Property Development Co., Ltd (“Sanyang”). Sanyang owns 100% interest in Central Avenue Retail Mall, which is located in Qingdao, the PRC. The Trust anticipates the acquisition to be completed in the first quarter of 2011 and the purchase consideration of RMB476.8 million (equivalent to approximately $93.6 million) will be funded by a combination of bank debt, equity raised from a private placement (Note 15) and issuance of convertible bonds (refer to (d) below).

(b) The Trust entered into an exclusive but non-binding memorandum of understanding (the “MOU”) on 17 November 2010, pursuant to which the Trust proposed to acquire 100% interest in a Chinese property company which owns 100% interest in Huai Hai Mall located in Shanghai, the PRC. The Trust anticipates the acquisition to be completed in the second quarter of 2011 and the purchase consideration of RMB575.0 million (equivalent to approximately $111.4 million) will be funded by a combination of bank debt, equity raised from a private placement (Note 15) and issuance of convertible bonds (refer to (d) below).

(c) On 14 January 2011, the Group had a further drawn down of the three-year multi-currency facility of RMB65 million (equivalent to approximately $12.7 million).

(d) On 23 February 2011, the Trust announced the finalisation of terms for the issuance of convertible bonds with nominal amount of $59.7 million. The convertible bonds have a tenure of 3.5 years and bear interest coupon of 6.0% per annum. The Trust anticipates the convertible bonds to be issued in the first quarter of 2011. The proceeds from the issuance of the convertible bonds will be used to finance the acquisitions described in (a) and (b) above.