About Shanghai Vision Asset Management Co Ltd.

1. When is Shanghai Vision Asset Management established?

2. Where is Shanghai Vision Asset Management based?

3. What are the scopes of business of Shanghai Vision Asset Management?

4 . What is the mailing address of Shanghai Vision Asset Management?


About Ongoing Management Service

1. How to become a SVAM customer?

2. How SVAM charges service fee?

3. I moved recently, how can I update my personal information with SVAM?

4. My passport is expiring (expired), do I need to give SVAM a new copy?

5.When should I expect to receive the ongoing management report?

6. If I didn't receive a report, who shall I contact?

7. What should I expect to see from ongoing management report?

8. If I have questions regarding the ongoing management report, who shall I contact?

9. I have received a fund request, why? Will there be any late charge if I pay after the due date?

10. Can I request to have my rent remitted more frequently?

11. When is the start date for my property ownership?

12. When is the next remittance scheduled for?

13. Can I set up a standing order from my bank in SH to go to my bank account in Hong Kong?

14. Can I re-mortgage my property?

15. How to get the POA and Passport notarized?

16. If I want to pay off part or all of my mortgages, what is the restriction? Will there be any early repayment penalty charged?


About Exit Sale

1. Can I sell my apartment even though I am in a period of guaranteed yield?

2. If I want to sell my apartment, who will look after the sale?

3. What is the process of exit sale?

4. If the agent sells the property what is the SVAM fee of 2% for? What is the mortgage settlement fee + FX transfer out of China of 1% for?

5. On your original note it says it takes a long time to get money out of China, why?

6. Do I receive any third party independent evidence of the sale and my mortgage being fully paid off?

7. Per exit sale documents witness signing by the commissioner for Oaths or authorized solicitor by Department of Foreign Affairs. Can you please advice as to what this means and what action I need to take?

Project Specific

Paris Garden (PG):

1.My PG unit has a three year lease and will expire in 2008, what should I do?

2. Who will manage my property after the current lease contract expires in 2008?

3. Who will hold the keys after the guaranteed lease expires?

4. What about the tenant in there do they not want to continue renting?

5. What exactly will happen and what is Shanghai Vision going to do about this?

6. Will you be able to get another management company?

7. How can my unit manage to get higher rent?

Times Square Shanghai (TSS):

1.Do I get free nights every year as the property owner of TSS?


Gubei International Plaza (GIP):

1. Why did my GIP rent start in July 2007 and not May 2007?

2．Why there is no rent payment in July, 2008?

Dynamic Crystal (DC):

1. Why I see the first quarterly rent payment in April instead of in January?

2.Why I didn’t see rent payment in the first quarter of 2008?

3.Do I get free nights every year as the property owner of Dynamic Crystal?

Monet Image (MI):

1. How and when the rent of 2008 being paid?

Rendezvous:



Hong Run (HR):



Summit Residence (SR):



Talent Studio (TS):

1. What shall I do once the current 3 year guaranteed lease expires by the end of year 2008?



About Shanghai Vision Asset Management Co Ltd.

1. When is Shanghai Vision Asset Management established?

Shanghai Vision Asset Management was established in August 2005.

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2. Where is Shanghai Vision Asset Management based?

SVAM is a Shanghai based company, registered in China.

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3. What are the scopes of business of Shanghai Vision Asset Management?

SVAM is established as a property managing and consulting company to provide ongoing management service to property owners who are non Chinese residents.

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4. What is the mailing address of Shanghai Vision Asset Management?

17 E, Suntong Inforport Plaza, 55 Huaihai West Road, Shanghai 200030, China.
Investor Direct line: +86 21 6280 9118
investorservice@shanghaivision.com.cn (Strongly recommended for better, fast response)
www.shanghaivisionassetmanagment.com

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About Ongoing Management Service

1. How to become a SVAM customer?

By issuing a Power of Attorney to SVAM and providing a copy of valid passport (both shall be notarized by local notary public as well as Chinese embassy in the country of the investor), SVAM can help you managing your investment property in Shanghai. The standard service provided by SVAM is detailed in Service Level Agreement. Please go to www.shanghaivisionassetmanagment.com for details.

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2. How SVAM charges service fee?

SVAM charges 10% of gross rental for guaranteed lease units, 15% for non-guaranteed lease units. SVAM will collect fees semi-annually in arrears to facilitate investor cash flow -   in June or Dec each year.

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3. I moved recently, how can I update my personal information with SVAM?

Please go to www.shanghaivisionassetmanagment.com to update your contact information. You can also send email to investorservice@shanghaivision.com.cn.one of our staff will confirm with you once your contact information is updated.

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4. My passport is expiring (expired), do I need to give SVAM a new copy?

Yes. SVAM can not manage your bank account or collect your rent without a valid passport copy of yours. If you have renewed your passport, and get a new passport number, it is very important to provide SVAM a notarized new copy of your passport and get your solicitor to state that both numbers belong to the same person.There are three steps involved in the legalization process:

• You will sign the copy of passport in the presence of your solicitor who will then put their signature or stamp on each page of the document. The Solicitor you use must be a registered Commissioner for Oaths. The solicitor should indicate that "I have viewed Mr/Ms Jane Doe's old passport No# 33333333 and his new passport No. 4444444. I hereby verify that both do belong to the same person."
• You will then bring the signed document to the department for Foreign Affairs (for IE investors) (or equivalent in UK) and they will notarize the passport copy for you.
• Once notarized you must bring the passport copy to the Chinese embassy where they will put their official stamp on it.

As SVAM investor, you are entitled to receive two ongoing management packs per year, once in early February and once in early August. We strongly recommend that you request the electronic version which is environment friendly and you can also view the report at real time.

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6. If I didn't receive a report, who shall I contact?

If you have not received the report 30 days after the scheduled delivery date, please contact us immediately to verify your mailing address with us: investorservice@shanghaivision.com.cn
If you request the electronic version of ongoing report, please update your most current email address with us.

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7. What should I expect to see from ongoing management report?

You can contact us through email, investorservice@shanghaivision.com.cn or submit your question through website www.shanghaivisionassetmanagment.com, or call investor direct line: + 86 21 6280 9118. Your investor accountant will reply to you within 24 hours after your inquiry is received in weekdays. We strongly recommend our investor to communicate with us through email so we can keep record and also for internal training purpose.

• You will have to come to Shanghai to open bank account at new mortgage bank and sign mortgage application and mortgage contract.
• SVAM have your original copy of property Title Deeds.
• You have to make the payment to current mortgage for over 12 month without any late payment. (Monthly mortgage statement for past 12 month is required)
• You can only re-mortgage your first property. If you have more than one property, you won't be able to get a favorite mortgage rate. Factor in all the cost related to the refinancing, it might not be an economical decision to re-mortgage.

• You will sign the Power of Attorney and copy of passport in the presence of your solicitor who will then put their signature or stamp on each page of the document. The Solicitor you use must be a registered Commissioner for Oaths.
• You will then bring the signed document to the department for Foreign Affairs (or equivalent in UK) and they will notarize the Power of Attorney for you.
• Once notarized you must bring the Power of Attorney to the Chinese embassy where they will put their official stamp on it.

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16．If I want to pay off part or all of my mortgages, what is the restriction? Will there be any early repayment penalty charged?

In general, if you have paid your mortgage for over 12 month, and the repayment amount is at least 6 times of monthly repayment amount, there won’t be any early repayment penalty. But you need to make appointment 7~15 days before the payoff date with written application. Some bank might have restriction on how frequently you can apply for the early repayment, for example, Agriculture Bank of China only allows early repayment once a year while Bank of China has no restriction at all. Please contact your investor accountant for details of your mortgage.

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About Exit Sale


1. Can I sell my apartment even though I am in a period of guaranteed yield?

Even though we strongly urge our investors to hold your property until the lease expires or for 5 years to avoid the 5.65% sales tax and 20% personal gain tax, you are free to sell your property at anytime. But the future buyer has to honor the current lease contract therefore if is very difficult to find such a specific buyer. Also the tenant or management company has the first right to purchase if all terms are the same.

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2. If I want to sell my apartment, who will look after the sale?

You can delegate SVAM or other reputable solicitor or independent third party to help you with sale.


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3. What is the process of exit sale?

• When you decide that you wish to sell your unit in Shanghai please contact the Shanghai SVAM HQ directly.
• On agreement, they can then arrange for an independent valuation to be conducted on your specific unit once they receive the request from you in writing (E-mail and/or letter). The valuation is sent to you by fax within 1 week of the request being received in Shanghai and the valuation fee automatically debited from your Shanghai bank account. (Guideline Costs - Property Specific Valuation undertaken by reputable independent third party – e.g. DTZ, Century 21. $350 for residential land use $500 for commercial land use)
• If you wish SVAM to continue the sales process you are required to complete a specific "Sales Power of Attorney" in the name of SVAM and send to the SVAM Shanghai office with your "Title Deeds" for the property you wish to sell.
  The "Sales Power of Attorney" shall be linked directly and only to the property you wish to sell for risk management reasons.
• When a buyer is identified and an offer is made, you will be informed by email of the terms. If the offer is below 96% of valuation price received your written approval is required. You cannot hold SVAM responsible for losing a buyer if a decision is not forthcoming within 24hrs.
• Under recent government policy - If you have a mortgage, you will need to cancel and repay the mortgage (Before getting 100% of the property price from the buyer).
  The down payment received from the buyer can be used to repay all or part of the mortgage. If this is insufficient to cover the balance of the mortgage, a guarantee company can be used to lend money to cover this until the purchaser pays the full property price at short term lending rates – "Bridge Financing".
• After handover, SVAM can apply for the RMB proceeds of the sale to be remitted overseas. This application process will involve permission from the local government district, the regional or provincial government and finally from the State Administration of Foreign Exchange. As the financial industry is still in the early stages of developing, this can currently take over 1 month to complete.

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4. If the agent sells the property what is the SVAM fee of 2% for? What is the mortgage settlement fee + FX transfer out of China of 1% for?

Unless you come to Shanghai yourself, SVAM will work on behalf of you as your Exit Sale Power of Attorney to negotiate with the buyer, contact property Management Company to show your property, sign the sales contracts, pay the taxes, notarize the sales contracts, collect payment from buyer and register the sale at the property exchange center for transferring ownership. Usually 4 month period is needed for a regular transaction; SVAM will need to spend a lot of resources on each individual Exit Sale.

For those investors who currently have mortgage with a bank, SVAM will need to arrange the mortgage pay off at the bank before the property sale transaction can take place. This process starts from submitting application to the mortgage bank and ends with obtaining a clean title from the Property Exchange Center. It will take approx 1.5 months to complete.

All investors then need the special complex service of getting your RMB funds safely out of China to your foreign country via SAFE (State administration of Foreign Exchange). This process continues to increase in complexity with further government controls.

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5. On your original note it says it takes a long time to get money out of China, why?
 
Once all the fees and charges settled after the ownership transfer at property exchange center, we need to obtain a Tax Certificate from them which proofs that you have fulfilled all of your tax obligation related to this transaction. The processing time for this certificate is 25 working days.

Then, with this Tax Certificate, we will submit all of your documents (sales contract, POA, passport, tax certificate, written application) to SAFE, which is State Administration of Foreign Exchange, to apply for the quota of foreign currency which equivalent to the RMB amount remaining on your bank account. It is a one time application, you will have to send all of your RMB out of country once, and the amount can’t exceed the sales amount of your property. This process will normally take 21 working days.

SVAM staff will arrange the purchase of FX and remit to the account at your home country within 3 working days after SAFE approval is obtained.

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6. Do I receive any third party independent evidence of the sale and my mortgage being fully paid off?

Yes, you receive the following 3 items when the process is fully complete-
-  A stamped letter indicating mortgage on the property as been all paid off.
-  An official tax receipt indicating tax amount paid on the sale price
-  The actual Shanghai Real Estate notarized sales contract

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7.Per exit sale documents witness signing by the commissioner for Oaths or authorized solicitor by Department of Foreign Affairs. Can you please advice as to what this means and what action I need to take?

Witness signing a document means you will have to sign the POA or passport renewal statement in front of a solicitor. This solicitor can be anyone who is registered with Department of Foreign Affairs. All parties whose name shown on the title deeds should present to sign on the POA. A delegation letter might be required if one property owner could not be present. Please consult with your local solicitor regarding the delegation.

 Once you signed on the POA or passport renewal statement, the solicitor should stamp and sign on each page of the document before forward it to the Department of Foreign Affairs, then to Chinese Embassy at last. This is called the three step legalization process.

 Please remember not to bind the POA and Passport Renewal Statement together, POA will be collected by Chinese government agencies at the end of the transaction, and your passport copy will be needed for SVAM to process the sale proceed remittance after that.

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Project Specific


Paris Garden (PG):

1.My PG unit has a three year lease and will expire in 2008, what should I do?

Currently SVAM investors own a large percent of rooms in Block 6 of Paris Garden, the leases for these units will expire in 2008. You can continue authorize SVAM to lease your property or consider selling once the guaranteed lease expires.

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2.Who will manage my property after the current lease contract expires in 2008?

As we explained in the letter included in Jan 08 ongoing management report, SVAM will continue manage your Paris Garden property and we have reached agreement with PG management company that they will continue rent your unit until 2010, when most of our investors will hold the property for 5 years. According to current regulation, properties owned for over 5 years will not be charged sales tax during sale, and will enjoy much lower rate on the capital gain tax as well.
Once your guaranteed lease expires, your unit will continue be managed by PG management company and rent it base on the market price. You will receive a summary of the lease detail whenever there is a new lease signed.

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3.Who will hold the keys after the guaranteed lease expires?

The same rental company will rent out your unit but not with a guarantee on the amount of rent you shall receive.

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4.What about the tenant in there do they not want to continue renting?

Tenants do not have to make that decision until the final month of the contract. Yes, they may wish to stay but also may leave whereas a new tenant is looked for..

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5.What exactly will happen and what is Shanghai Vision going to do about this?

Shanghai Vision Asset Management (SVAM) will continue to report on your asset and work with the rental company to keep trying to rent out each unit.

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6.Will you be able to get another management company?

The rental company will remain the same. They know the area best for rental demand.

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7. How can my unit manage to get higher rent?

You can order an improvement on the interior to give your apartment a new look. SVAM has collected remodel plan and quotations from professional company to help SVAM investor get the job done without long vacant period.

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Times Square Shanghai (TSS):

1.Do I get free nights every year as the property owner of TSS?

In late 2007, the developer concluded in order to maintain the high yield on the building, no limited number of free nights can be given to investors in the 5 year period.

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Gubei International Plaza (GIP):

1. Why did my GIP rent start in July 2007 and not May 2007?

GIP was scheduled to handover to owners after it’s been fully decorated and furnished by developer before April 30, 2007. Due to project delay causing by unforeseen reasons, the handover was made on June 30, 2007. Thus the lease contract started from July 1, 2007 till June 30, 2010. SVAM has helped all GIP investors collecting their first rental payment on July 1, 2007.

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2．Why there is no rent payment in July, 2008?

According to the lease contract, the rent will be paid bi-monthly in arrears. Belgravia, the GIP management company has agreed to pay the rent in advance for the first year, and from the second year and third year, the rent will be paid in arrears. So the rent for July and August 2008 will be paid in September 2008 instead of July 2008.

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Dynamic Crystal (DC):

1. Why I see the first quarterly rent payment in April instead of in January?

Regarding the rental payment of Dynamic Crystal, according to the lease contract, starting from year 2008 and the years after, the rent will be paid in arrears instead of paid in advance as in 2007. You will receive the first quarter rent by the end of April.

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2.Why I didn’t see rent payment in the first quarter of 2008?

According to the lease contract, rent will be paid by quarterly, and only in advance in the first year which is 2007. Starting from 2008, the rent will be paid in arrears, which means there will be a six month gap between the last rent payment in 2007 and first rent payment in 2008. The first rent payment in 2008 will be in April.

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3.Do I get free nights every year as the property owner of Dynamic Crystal?

As defined in lease contract, property owner of Dynamic Crystal can stay at the property for 5 free nights each year. Certain terms and black out date does apply. Only property owner can enjoy the free stay. For reservation requirement, please check with SVAM staff for details.

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Monet Image (MI):

1. How and when the rent of 2008 being paid?

According to the lease contract, the 10 year lease contract consists of two part, with the first 3 years paid a guaranteed rent, and from the fourth year and going forward, the rent will be paid as the percent of your share of the annual net operation income. Your percent of share is the original purchase price of the total value of the building. The rent will be paid one a year and the rent for year 2008 will be paid in late April 2009.

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Rendezvous:

Hong Run (HR):

Summit Residence (SR):

Talent Studio (TS):

1. What shall I do once the current 3 year guaranteed lease expires by the end of year 2008?

You can continue to authorize SVAM to lease out your property based on the market value. SVAM will work with real estate agents to minimize the vacancy period and achieve higher rent. If you wish to sign another guaranteed lease, please contact us for discussion.

You can also exit sale your unit and SVAM professional will assist you.

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