Yuexiu Property Acquired Residential Land Parcel in Luogang District, Guangzhou City
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[For Immediate Release] Yuexiu Property Acquired Residential Land Parcel in Luogang District, Guangzhou City Another High Quality Land Acquisition in Guangzhou Expanded Business Scale through Continuing Innovative Land Acquisition Model (31 October 2013 – Hong Kong) Yuexiu Property Company Limited (“Yuexiu Property” or the “Company”) (HKEx Stock Code: 00123) announced the Company acquired a land parcel located in the Yunpu Industrial Zone of Luogang District in Guangzhou City (“Guangzhou Luogang Yunpu Industrial Zone Land Parcel”) on 31 October 2013 on a joint bidding basis through its indirect 95.48% owned subsidiary, Guangzhou Hongjing Property Development Co. Ltd. (“GZHJ”) and investment fund Guangzhou Yuexiu Renda No. 5 Business Investment Enterprise (“Yuexiu Renda”). Each will hold 10% and 90% equity interest of the project company respectively. The Guangzhou Luogang Yunpu Industrial Zone Land Parcel has a site area of approximately 189,520 sq.m. and a total gross floor area of approximately 666,422 sq.m., of which the permissible gross floor area amounts to approximately 473,800 sq.m., and the underground gross floor area amounts to approximately 192,622 sq.m.. The total land premium of the land parcel is RMB4.35 billion. Based on the total gross floor area, the average land cost amounted to approximately RMB6,500 per sq.m.. The land parcel will be used for residential purposes. As of 31 October 2013, the Company’s total landbank amounted to approximately 16.38 million sq.m.. In terms of attributable interest, the Company’s landbank amounted to approximately 13.71 million sq.m.. The land parcel is located to the south of Yunpu First Road, Yunpu Industrial Zone in Luogang District of Guangzhou City, Guangdong Province. It is only a 45-minute drive away from the Zhujiang New Town central business district of the city centre in Guangzhou. Surrounded by lush natural landscape and scenic views, the land parcel provides a pleasant living environment. The area has gathered large-scale residential complexes established by various well-known developers, planned to be part of the Guangzhou Eastern Landscape New Town. As a primary area for the distribution of the population in Guangzhou in the future, the land parcel has excellent development prospects. - Cont’d - Yuexiu Property Acquired Residential Land Parcel in Luogang District, Guangzhou City 31 October 2013/ Page 2 Yuexiu Renda is a limited partnership investment fund established under the laws of the PRC, and is principally engaged in the business of investment and management. Guangzhou Yuexiu Holdings Limited, the parent company of Yuexiu Property, is a major shareholder of Yuexiu Renda. GZHJ and Yuexiu Renda have entered into a cooperation agreement on the date of the successful bidding. Pursuant to which, GZHJ and Yuexiu Renda shall establish a project company for the development of the Guangzhou Luogang Yunpu Industrial Zone Land Parcel. GZHJ and Yuexiu Renda shall own 10% and 90%, respectively, of the equity interest in the project company upon its formation. The Company has adopted the innovative land acquisition model in cooperation with the investment fund used in the first half of the year, which allows the Company to achieve effective resource allocation to maintain a relatively low gearing ratio as well as to realize economies of scale. Meanwhile, Yuexiu Renda has granted a call option for GZHJ to acquire the remaining 90% equity interest in the project held by Yuexiu Renda, which enables the Company to own the entire project during the effective call option period, subject to the development progress of the project. The management of Yuexiu Property said, “The Guangzhou Luogang Yunpu Industrial Zone Land Parcel is located in the rapidly developing Luogang District of Guangzhou. Together with the Company’s three existing projects in the region, namely Guangzhou Ling Nan Hillside, Guangzhou Ling Nan Villas and Guangzhou Ling Nan Woods, the Company will be able to effectively share resources to achieve economies of scale, as well as continue to solidify the strategic layout of ‘Home Base in Guangzhou and Strategic Expansion Nationwide’. Following the successful bid of the Hangzhou Jianggan Land Parcel on 26 June, Foshan Chancheng Tongji Road Land Parcel on 10 July, and Wuhan Jianghan Jingwu Road Land Parcel on 12 September, the Company has again utilized its innovative land acquisition model. Through resource consolidation and complementary advantages, such initiative will achieve economies of scale by developing large-scale projects with small but reasonable amount of investment.” - End - Yuexiu Property Acquired Residential Land Parcel in Luogang District, Guangzhou City 31 October 2013/ Page 3 About Yuexiu Property Yuexiu Property Company Limited (HKEx Stock Code: 00123) was listed in Hong Kong in 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 30 June 2013, the Company’s combined GFA of properties under development and undeveloped properties was approximately 14.45 million sq.m.. Media Contacts: Yuexiu Property Company Limited Swan Wan Tel: (852) 2593 2326 Fax: (852) 2511 0832 Email: [email protected] iPR Ogilvy Ltd. Callis Lau/ Gary Li/ Molisa Lau/ Joey Ho/ Karl Cheung/ Janis Lai Tel: (852) 2136 6952/ 3170 6753/ 2136 6953/ 3920 7642/ 3920 7639/ 3920 7646 Fax: (852) 3170 6606 Email: [email protected] .