Yuexiu Property Joins Forces with Greenland and Ping an to Develop Guangzhi Land Parcels

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Yuexiu Property Joins Forces with Greenland and Ping an to Develop Guangzhi Land Parcels [For Immediate Release] Yuexiu Property Joins Forces with Greenland and Ping An to Develop Guangzhi Land Parcels Breakthrough in cooperation with industry heavyweights Strategic position reinforced in “home base” of Guangzhou (27 July 2015 – Hong Kong) Yuexiu Property Company Limited (“Yuexiu Property” or the “Company”) is pleased to announce that the Company’s subsidiary has formed two joint ventures separately with subsidiaries of two Fortune 500 companies, Greenland Holding Group Company Limited and Ping An Insurance (Group) Company of China, Ltd., to develop two land parcels in Guangzhi Area, Haizhu District, Guangzhou, Guangdong Province. The partnerships are formed in accordance with the Company’s business expansion strategy of “returning to tier-one and tier-two cities” and further strengthening the Company’s strategic position in its “home base” of Guangzhou. This is also another breakthrough of the Company’s cooperation mode in the integration of resources for development in recent years. Guangzhou Yingsheng Investment Co., Ltd., a 95.48%-owned subsidiary of Yuexiu Property, formed a 50:50 joint venture with Guangzhou Greenland Property Development Limited, which is under Greenland Group, in order to develop the land parcel for residential and commercial uses located at Guangzhi Area, Haizhu District, Guangzhou ("Land Parcel 1"). Land Parcel 1 has a site area of approximately 22,246 sq.m. and a total gross floor area of approximately 229,556 sq.m., of which the permissible gross floor area is approximately 164,620 sq.m.. The land premium for Land Parcel 1 is RMB2,633,930,000 and the average land cost based on the total gross floor area amounts to approximately RMB11,500 per sq.m.. Land Parcel 1 had been acquired by a subsidiary of Guangzhou Greenland by way of open tender at the reserve price on 26 June 2015. Guangzhou Yingsheng has also formed a 51:49 joint ventures with Shenzhen Joint Investment Management Limited, a subsidiary under Ping An Group, in order to develop another land parcel for residential and commercial uses at Guangzhi Area ("Land Parcel 2"). Land Parcel 2 has a site area of approximately 103,029 sq.m. and a total gross floor area of approximately 735,585 sq.m, of which the permissible gross floor area is approximately 556,107 sq.m.. The land premium for Land Parcel 2 is RMB8,897,720,000 and the average land cost based on the total gross floor area amounts to approximately RMB12,100 per sq.m.. Land Parcel 2 had been acquired jointly by a subsidiary of Yuexiu Property and a partner by way of open tender at the reserve price on 26 June 2015. As of the date of this announcement, the Company’s total land bank amounted to approximately 15.68 million sq.m.. In terms of the Company's attributable interest in such land, the Company’s land bank amounted to approximately 12.91 million sq.m.. Both land parcels are located in the western part of the Haizhu District, Guangzhou, Guangdong Province, adjacent to the Pearl River with abundant resources. There are comprehensive services and facilities provided in the surrounding areas, providing an excellent living environment. Transportation network nearby the project is convenient, with close proximity to Yangang Station of Guangfo Metro Line Phase 2, which is under construction, as well as Nanshi Lu Station of Metro Line 11 which is at its planning stage. The region where the land parcels are situated has been positioned as the "Engine of Haizhu West, and the Harbour of Vitality in Guangzhou and Foshan". The region shall be developed to become a key production area in Guangzhou, a promenade for quality living in Guangzhou and Foshan, and key service centre in the western coast of Pearl River Delta. Given the apparent locational advantages, there is great development potential with a planned population that exceeds 120,000 citizens. The land parcels are where Guangzhou Paper Group was previously located. Guangzhou Paper Group was a large-scaled enterprise, and was connected with Yuexiu Property because they had the common parent company, Guangzhou Yuexiu Group Company Ltd. Guangzhou Paper Group was founded in 1936, and its old site had been dubbed “Paper City” by the people in Guangzhou as it carried collective memories of the good old days among several generations of the people in the city. Guangzhou Paper Group was relocated to Nansha District in 2011 as part of Guangzhou’s environmental campaign. The site left behind was designated as one of the key projects in the “Urban Redevelopment” of Guangzhou. The management of Yuexiu Property said, the cooperation with Greenland Group and Ping An Group in developing the two land parcels in Guangzhi is a timely move to expand quality land bank under the strategy of “Home base in Guangzhou and strategic expansion nationwide” and in accordance with the business expansion strategy of “returning to tier-one and tier-two cities”. The Guangzhi land parcels are large, rare and premium lands that can be found in the downtown area of Guangzhou in recent years. They reflect Yuexiu Property’s advantage in acquiring quality lands in Guangzhou. The Group’s land bank in Guangzhou now exceeds 6.50 million sq.m., accounting for 42% of the total land bank, which further strengthened the Company’s strategic position in the “home base” of Guangzhou. The management said, this is the first time for Yuexiu Property to jointly develop property projects with two Fortune 500 companies, Greenland Group and Ping An Group. The alliances will allow the partners to fully capitalize on their respective advantages such as resources for property development and brand influence, and lead to successful development of the land parcels. As the competition in the PRC’s real estate market intensifies, cooperation between heavyweights in the real estate market has become an effective means of strengthening cooperation between real estate enterprises, and creating win-win situations. In recent years, the Company has cooperated with investment funds, Guangdong Poly Property Development Limited and Guangzhou Guangdian Property Development Group Co., Ltd., through which the Company has achieved effective integration of resources and complementing of competitive edges. The Company's current cooperation with Greenland Group and Ping An Group is an innovative mode of cooperation for the Company in recent years, which helps the company to achieve rapid and steady expansion and enhancement in operation quality. In the future, the Company will continue to deepen the mode of cooperation with its partners to establish long-term partnerships beneficial to both parties and also actively explore new ways to develop. - End - About Yuexiu Property Yuexiu Property Company Limited (HKEx Stock Code: 00123) was listed in Hong Kong in December 1992. The Company’s main business is property development with its operations mainly concentrated in the Guangzhou area. It is gradually expanding its business to Pearl River Delta, and branching out to select locations in the Yangtze River Delta, Bohai Rim Economic Zone and Central Region. As of 31 December 2014, the Company’s combined GFA of properties under development and undeveloped properties was approximately 14.31 million sq.m.. Media Contacts Yuexiu Property Company Limited Swan Wan Tel: (852) 2593 2326 Fax: (852) 2511 0832 Email: [email protected] iPR Ogilvy & Mather Callis Lau/ James Wong/ Molisa Lau/ Natalie Tang Tel: (852) 2136 6952/ 3920 7642/ 2136 6953/ 3920 7640 Fax: (852) 3170 6606 Email: [email protected] .
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