HONG KONG, Feb. 7, 2013 /PRNewswire/ -- One of the leading property developers in Guangdong Province in China - China Aoyuan Property Group Limited ("Aoyuan" or the "Company", together with its subsidiaries the "Group"; Stock Code: 3883) is pleased to announce that the Group has entered an agreement with Guangzhou Kang Wei Group Company Limited ("Kang Wei") to acquire 51% of the share capital of Kang Wei with a total investment amount including a capital contribution of RMB76.5 million, the Loan and the Shareholder's Loan together not exceeding RMB525 million. The Loan is at an annual interest rate of 16%.
Aoyuan will get the land use rights over four pieces of land with a combined area of approximately 232,864 sq.m. in Xintang Town, Zengcheng, Guangzhou through the acquisition. Application has been submitted by Kang Wei to the relevant authorities in the PRC for the redevelopment of the project and change of land use, so that commercial service facilities such as commercial, hotels, offices, entertainment and exhibition centres can be built on the lands. The lands enjoy a geographical advantage with huge market potential. The Group will persist on the development strategy of "rapid development and rapid sale" to strive for considerable returns for shareholders.
Mr. Guo Ziwen, Chairman of Aoyuan, said, "Subsequent to the acquisition of a piece of quality commercial lands in Hanxi, Panyu, Guangzhou, the acquisition of the project in Xintang Town, Zengcheng, Guangzhou will strengthen the Group's land bank portfolio in Guangdong, further solidifying the Group's core development strategy in Guangdong Province. The acquisition is also in-line with the Group's product strategy of 'developing commercial and residential properties in parallel' and the development strategy of 'rapid development and rapid sale', so as to facilitate the Group entering to a rapid expansion era."
Corporate Profile
China Aoyuan Property Group Limited is listed on the Main Board of the Stock Exchange of Hong Kong Limited (Stock Code: 3883). As at 30 June 2012, Aoyuan owned a diversified portfolio of 26 projects all over China, such as Guangdong, Shenyang, Jiangsu, Chongqing, Guangxi and Jiangxi. The Group has a land bank with a total GFA of approximately 8.81 million sq. m.
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