Acquisition Will Provide the Company with the Necessary Development and Sale
Right to a Significant Portion of the Available Residential and Commercial
Land in the Highly Coveted Baqiao Hi Tec Industrial Zone
XI'AN, China, March 12 /Xinhua-PRNewswire/ -- China Housing and Land
Development, Inc. ("China Housing") (OTC Bulletin Board: CHLN), a leading
developer of residential and commercial properties in the city of Xi'an
announced today that on March 9, 2007 it has signed a definitive agreement to
acquire Xi'an New Land Development Co. Ltd. ("New Land").
Pursuant to the definitive agreement, China Housing purchased 100 percent
equity ownership of New Land for 270 million RMB or approximately $34 million
USD. The total purchase price includes the initial cash payments of 62 million
RMB, or approximately US$8 million, and the issuance of 10% promissory note of
the balance payable before or on January 30, 2009. The acquisition is
expected to close 30 days after the completion of the GAAP audit.
As part of the agreement with the Baqiao District Government and prior to
any sales, China Housing will be responsible for the installation and
maintenance of all basic infrastructure, including water, electricity, gas
supply, telecommunication and sewer systems. New Land has already spent
approximately $8.8 million to date on such initiatives and many of these
infrastructure projects are well under way. Once these improvements are
completed management expects to begin selling parcels of land by the end of
calendar 2007.
The Baqiao Hi-Tec Industrial Zone, which encompasses about 8 miles in
total size, is located approximately 6 miles from the center of Xi'an, linked
by 3 highways and is expected to be the first stop along a planned cross-town
subway which will start from the center of the city out to this new area. This
project has the support of various Chinese central government agencies,
including the National Development & Reform Commission, the Ministry of Land &
Resources, the Ministry of Agriculture, the Ministry of Science and
Technology, and the Ministry of Commerce. According to the Xi'an 10 year
development plan, this region has been earmarked to be the main high-end
residential area of Xi'an city and the Xi'an Central Government has an
initiative to move nearly 600,000 residents from the center of the city to
this region during the next ten years. As a result of this acquisition, China
Housing will take the first steps in the primary land market, and also have
the right to develop and sell 487 acres of property which has been targeted
for new residential developments.
"We are excited to sign a definitive agreement for this dynamic
acquisition opportunity, commented Mr. Pingji Lu, CEO & Chairman of China
Housing. "The piece of land we are acquiring constitutes a significant portion
of the available residential property in this high growth industrial region.
The price of raw land in Xi'an has increased steadily over the last five years
and based on continued strong economic growth, government initiatives and the
relative affordability of Xi'an in contrast to other major metropolitan
Chinese cities, we expect this favorable pricing trend to continue. We believe
that this acquisition, along with our other new developments, will be a major
contributor to our continued strong financial performance over the foreseeable
future."
The Company plans to file its 2006 10K and fourth quarter earnings press
release by March 31, 2007.
About China Housing and Land Development, Inc.
Based in Xi'an, the capital city of the Shaanxi province in China, China
Housing and Land Development, Inc. is the largest private developer of
residential and commercial properties. China Housing has been an independent
business since 1992 and became a US publicly listed company in 2006.
Cautionary Statement Regarding Forward Looking Information
This Press Release may contain forward-looking information about China
Housing and Land Development, which are covered under the safe harbor for
forward-looking statements provided by the Private Securities Litigation
Reform Act of 1995. Forward- looking statements are statements that are not
historical facts. These statements can be identified by the use of forward-
looking terminology such as "believe," "expect," "may," "will," "should,"
"project," "plan," "seek," "intend," or "anticipate" or the negative thereof
or comparable terminology, and include discussions of strategy, and statements
about industry trends and China Housing and Land Development's future
performance, operations and products. This and other "Risk Factors" contained
in China Housing and Land Development, Inc.'s public filings with the SEC.
Contact:
Company:
Jing Lu (86) 29 82582632
lujing@chinahousinginc.com.cn
Investors:
Matt Hayden
Hayden Communications
(858) 704-5065 or matt@haydenir.com
