HONG KONG, Dec. 1, 2014 /PRNewswire/ -- China Aoyuan Property Group Limited ("Aoyuan" or the "Company", Stock Code: 3883), a renowned property developer in China, is pleased to announce that its wholly-owned subsidiary, Guangzhou Aoyu Real Estate Development Company Limited ("Guangzhou Aoyu"), has named Huaxia Life Insurance Co. Ltd ("Huaxia Insurance") as a strategic investor by means of capital injection, raising capital of RMB1 billion.
According to the agreement, Huaxia Insurance will invest RMB1 billion in Guangzhou Aoyu through capital injection. Upon completion, Aoyuan and Huaxia Insurance will hold equity interests of approximately 54% and 46% in Guangzhou Aoyu, respectively. Guangzhou Aoyu currently owns an investment property - Guangzhou Aoyuan Plaza. The project, with a total gross floor area (GFA) of approximately 80,000 sq.m., is the first international high-end shopping mall in Panyu, Guangzhou. Since opening in December 2012, a number of world renowned brands, including H&M, ZARA, CR Vanguard, etc., have entered into the shopping mall. The mall is running smooth operation, maintaining an occupancy rate of over 95% and generating stable rental income.
Aoyuan management commented, "It is an honor to have Huaxia Insurance as Aoyuan's strategic investor. Huaxia Insurance is one of the ten fastest growing financial institutions in China. In the first half year of 2014, it jumped to become the 7th largest insurer in China in terms of premiums. With Huaxia Insurance as Aoyuan's strategic investor, the Company will not only gain an additional source of capital but also facilitate an asset-light operating model, therefore strengthening cashflows and controlling the gearing ratio in a reasonable manner. By maintaining a stable and healthy financial position, Aoyuan can respond to market challenges more swiftly and achieve growth in scale, so as to create more value for our shareholders."
About Aoyuan
China Aoyuan Property Group Limited (stock code: 3883), listed on the Main Board of The Stock Exchange of Hong Kong in 2007, is a renowned property developer in China. Its projects are mainly located in Guangdong, Chongqing, Liaoning, Hunan, Jiangsu, Guangxi and Jiangxi, etc. The size of Aoyuan's land bank was approximately 11.96 million sq.m. in GFA as at 30 June 2014. Aoyuan adheres to a product strategy of "developing commercial and residential properties in parallel" and a development strategy of "rapid development and rapid sales". With a solid financial position and excellent project development and operation management capabilities, Aoyuan aims to become one of the highest growth potential property developers in China.
