Sunrise Real Estate Buying Two Floors of Sovereign Building

SUZHOU, CHINA-Suzhou Hui Long Development Pte. Ltd. has tentatively sold another two floors of its new 30-story Sovereign Building at the center of the China-Singapore Suzhou Industrial Park. A subsidiary of Shanghai-based Sunrise Real Estate Development Group Inc., the sole marketing and sales agent and underwriter for the project, has agreed to pay $4.7 million for the floors, which total about 33,000 sf. The subsidiary, Shanghai Shang Yang Real Estate Consultation Co. Ltd., is purchasing the fifth and 29th floors. Shang Yang plans to maintain one of the acquired floors as its corporate office for Suzhou operations, while the other floor will be rented out for commercial use, according to an announcement by Sunrise Real Estate, which is traded on the OTC Bulletin Board. Shang Yang will take possession of its space in March 2006. Shang Yang will be financing 50% of the purchase price with a five-year term loan.Including the latest transaction, Suzhou Hui Long Development is believed to have received commitments for close to 60% of the building, which it guaranteed it would do by May 2005. A company executive was not available Tuesday afternoon for comment.Earlier this month Bank of China confirmed it has acquired four floors in the building, the first three floors and the 28th floor. In early November, during the Suzhou Housing Expo 2004, the company says it sold 40% of the building.