Management expects that 2011 will be a transitional year for Lotus Pharmaceuticals, as the Company will be completing and moving into its new headquarters and shifting its focus to the wholesale business in Beijing and the surrounding areas. After the completion of the headquarters, the Company expects growth will resume, primarily driven by the wholesale business in Beijing starting in 2012.
We plan to focus our capital expenditures in the foreseeable future on the completion of our Beijing facility and our core business in Beijing. Lotus has a well-established nationwide sales and distribution network, strong product development capabilities, and access to capital. Due to the trends of consolidation and increasing regulatory oversight in China's pharmaceuticals industry, we believe these characteristics position Lotus to emerge as an industry leader.
Management anticipates that 2011 will be a transitional year for Lotus Pharmaceuticals, as the Company will be completing and moving into its new headquarters and shifting its focus to the wholesale business in Beijing and the surrounding areas. After the completion of the headquarters, the Company expects strong growth driven by the wholesale business in Beijing and surrounding areas starting in 2012.
The Company expects total revenue and profitability in 2011 will be lower than that of 2010. Specifically, the revenue from the wholesale segment will down from 2010, driven by the manufacturing disruption of Mu Xin and lower revenue from products with non-exclusive rights. However, management anticipates continued growth in Lotus' retail business in 2011, driven primarily by strong growth in the OTC sales division.
We recently spoke with the local Land Resource and Trade Center and estimate the property's value at $60 million to $80 million. When we invested in the land in Inner Mongolia, we received a favorable tax benefit with the first 8-year full exemption and the second 8-year half exemption. Lotus received tax breaks of $5 million in 2009 and $6 million in 2010. As a return, we are obliged to make a further investment in this property. We plan to use approximately 10% of the land, or approximately 100 square meters [sic], to build a pharmaceutical distribution center serving primarily the five northwestern provinces in China. We are negotiating with several potential collaborators to share the cost of building the distribution center and receive rights to develop the other 90% of the land as payment. By doing this, we can preserve the tax breaks. Alternately, we could sell 90% of the property outright and use the sales proceeds to pay for the distribution center. No matter which transaction we decide to pursue, we intend to coordinate with related parties to ensure that we will continue to enjoy the tax break with the transaction.