Integrating financial strengths and real properties expertise
HONG KONG, Jan. 8 /Xinhua-PRNewswire/ -- Greentown China Holdings Limited ("Greentown" or "the Company", together with its subsidiaries, collectively as "the Group"; stock code: 3900) and Warburg Pincus Asia LLC ("Warburg Pincus") jointly announced a Strategic Alliance Framework Agreement. The two parties plan to establish long-term cooperative relationship to focus on real estate development and investment in China.
This Strategic Alliance Framework Agreement is intended to act as a guiding principle for Greentown and Warburg Pincus. Leverage on the strong brand awareness and business strengths of Greentown in real estate development and the international experience of Warburg Pincus in capital markets, finance management and risk control, the two parties aim to standardize and internationalize the operations of Greentown with the objective of building it into an international real estate development company with sustainable growth.
In view of the implementation of macro-economic measures by the government to promote a healthy, long-term development prospect of the property sector, Greentown has actively cooperated with domestic and overseas institutions in property development via capitalizing on its strong brand awareness, capability of developing quality products and extensive management experience. Before signing the agreement with Warburg Pincus, Greentown has reached a strategic cooperative agreement with Gezhouba Group Corporation in August 2006. In September 2006, the Group signed a strategic cooperative agreement with Xizi Elevator Group Co., Ltd and later in November 2006, injected in the joint venture, a landbank of four plots of land with a total site area of 1.40 million square meters. Prior to these, Greentown has successfully developed several property projects in Ningbo together with Zhejiang Newspaper Group. Through this mode of cooperation, Greentown and its partners can consolidate on their competitive strengths to reach a win-win situation.
Mr. Shou Bainian, Executive Vice-Chairman & Chief Executive Officer of Greentown, said, "Warburg Pincus has been a strategic investor of Greentown. This strategic cooperative agreement can deepen the mutual cooperative relationship and promote our cooperation in project development. This is an important milestone for our cooperation with international investors in project development. We look forward to deepening our cooperative relationship with Warburg Pincus. We believe the expertise of Warburg Pincus in global capital market can help us develop various financing channels, enhance our financial management, strengthen risk control and achieve the best practices. In the future, we will expand actively our brand management business, in order to grow rapidly with relatively lower financial pressure."
About Greentown China Holdings Limited
Greentown China Holdings Limited is one of the leading property developers in China. The Group primarily develops quality residential properties targeting middle to high income residents in China. While the Group has historically focused its property development operations in Hangzhou and other cities within Zhejiang Province, it has over the years become a national player in the residential property markets with significant operations in Shanghai, Beijing and other strategically selected cities across the country, including Hefei in Anhui Province, Changsha in Hunan Province, Nanjing in Jiangsu Province and Qingdao in Shandong Province. In 2004, 2005 and 2006, our "Greentown" brand was ranked one of the 10 most valuable property brands in China by Top 10 China Real Estate Research Group.
About Warburg Pincus Asia LLC
Warburg Pincus is a global leader in the industry it helped create: Private Equity. Partnering with superior management teams, Warburg Pincus helps companies to create sustainable value. Warburg Pincus has an active management portfolio comprising of more than 100 companies. With over 10 years experience in China, Warburg Pincus is the earliest global private equity firms operating in the territory with latest investments including Harbin Pharmaceutical Group, R&F Properties, Huiyuan Juice, Greentown China Holdings
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