The Second Land Purchase in a Month as the Group Seeks to Speed up Its Development
HONG KONG, Aug. 12, 2013 /PRNewswire/ -- China Aoyuan Property Group Limited ("Aoyuan" or the "Company", together with its subsidiaries the "Group"; HKEx stock code: 3883), one of the leading property developers in Guangdong Province in China, is pleased to announce that the Group made the second move of its kind within the month of August, acquired two commercial and residential land parcels in Luogang District of Guangzhou in land auctions for RMB845 million and RMB461 million, respectively through the project company Guangzhou Luo'ao Real Estate Development Co., Ltd.
These two land parcels are located on Xiangxue Avenue in Luogang District, which is the commercial, financial and political centre of Luogang District in Guangzhou. They are only 1.5 kilometres away from the Luogang District Government and at the intersection of multiple subway lines close to the Xiangxue metro station which enjoys high passenger traffic. These sites are sufficiently supported by amenities of schools, hospitals, an international art centre and park, etc. The first parcel covers a site area of approximately 52,914 square meters and with expected gross floor area ("GFA") of approximately 211,656 sq. m. The second parcel covers a site area of approximately 29,652 sq. m. and with expected GFA of approximately 88,363 sq. m. in planned GFA. The two sites, which can be developed into approximately 300,000 sq. m. in aggregate planned GFA, are adjacent to each other and can therefore be planned and developed as a single project to maximize the project value. They are earmarked to be developed into a large-scale integrated commercial and residential project.
Geographically, these two sites are ideally located adjacent to another Aoyuan project, "Aoyuan Spring Garden", arranged in a layout that the Group believes will allow much better sharing of resources, increase cost efficiencies and strengthen the Group's brand influence in Luogang district of Guangzhou. Launched for sale for the first time in June this year, Aoyuan - Spring Garden received overwhelming responses with all units launched for sale sold out on the launch day and achieved RMB400 million in sales, making the project the best-seller in Guangzhou. This outstanding sales performance illustrated the strong end user demand in Luogang District.
Mr. Guo Zi Wen, Chairman of Aoyuan, said, "Following the land acquisition in Chonqing Chayuan earlier this month, the Group acted again in the land market and acquired the sites in Luogang, Guangzhou. Within the month of August, the Group spent RMB2.275 billion in aggregate in acquisitions of these three land parcels. These helped further strengthen the Group's land bank and are in line with the Group's long-term strategy. Since the beginning of this year, the Group entered into 8 acquisitions to acquire quality projects, most of which are located in Guangdong Province, including Zengcheng in Guangzhou, Jiangmen in Guangdong, Nanhai in Foshan, Yangjiang in Guangdong, Luogang in Guangzhou, and one in Chongqing Municipality. This year, the Group has entered into a phase of rapid development. Aoyuan will continue to upgrade and be innovative in key areas including product positioning, product design, marketing and sales planning. The Group proactively engages in development of commercial and residential mixed-use projects, whilst continuing to boost our land bank and maximize value for our shareholders."
Corporate Profile
China Aoyuan Property Group Limited, listed on the Main Board of The Stock Exchange of Hong Kong under the stock code 3883, is one of the leading property developers in Guangdong Province in China. Its projects are mainly located in provinces of Guangdong, Shenyang, Chongqing, Hunan, Jiangsu, Guangxi, and Jiangxi, etc. The size of Aoyuan's land bank was 9.955 million sq. m. in total planned GFA as of 31 December 2012. Aoyuan has been implementing a product strategy of "developing commercial and residential properties in parallel" and a development strategy of "rapid development and rapid sale". With a solid financial position and excellent project development and operation management capabilities, Aoyuan has entered into a phase of rapid development in 2013.
