Strengthens Land Bank and Maintains Rapid Development
HONG KONG, July 24, 2013 /PRNewswire/ -- China Aoyuan Property Group Limited ("Aoyuan" or the "Company", together with its subsidiaries the "Group"; HKEx stock code: 3883), a leading property developer in Guangdong Province, China, is pleased to announce that on 23 July 2013 it, through its wholly-owned subsidiary Aoyuan Group Company Limited ("Aoyuan Group"), acquired an 80% interest in a commercial and residential project that occupies a total site area of approximately 258,964 sq. m. on Long Island, Yangjiang City, Guangdong Province, for a consideration of approximately RMB212.8 million.
The project comprises four parcels of lands of gross floor area (GFA) aggregating approximately 362,052.8 sq. m. It was owned by an independent third party, Yangjiang City Run Xin Property Company Limited (the "Target Company"). Aoyuan partners with an independent third party, and acquired 80% and 20%, respectively, of the entire issued capital of the Target Company (Aoyuan will pay its share of RMB4 million). The two partners, by way of shareholders' loan and increase of share capital of the Target Company, will inject a total sum of no less than RMB261 million into the Target Company in the proportion of their respective shareholdings (Aoyuan will inject its share of approximately RMB208.8 million).
The project is located in the coastal city of Yangjiang in southwestern Guangdong. The city, adjacent to the Pearl River Delta, enjoys convenient transportation access. In recent years, Yangjiang's GDP growth has been maintained at above 13%, which is higher than the average levels of the country and the Guangdong Province. With a site area of approximately 260,000 sq. m., the project is located on Long Island in Yangjiang, and is about 2.8 kilometers from the District Government of Jiangcheng. It is planned to be constructed into a large-scale integrated community. The project boasts a beautiful scenery embracing a view of Moyang River, and enjoys a beautiful view of a 200-mu exclusive wetland park. It has excellent potential for development.
Commenting on the acquisition, Mr. GUO Zi Wen, Chairman of Aoyuan, said: "Despite the recent volatilities in the global financial markets, the Group remains optimistic about China's economy and the prospect of China's property market. This acquisition is the Group's first property project in Yangjiang, Guangdong Province, which is in line with the Group's long-term development strategy. We believe that it will not only strengthen the Group's land bank, but will also reinforce the Group's leadership position in Guangdong Province. The Group has entered into a phase of rapid development. For the first six months ended 30 June 2013, Aoyuan achieved total contracted sales of approximately RMB3.741 billion, up 62% year on year, and the total contracted GFA sold was approximately 466,100 sq. m., up 37% year on year. Average selling price for the period was approximately RMB8,000 per sq. m., up 19% year on year. Aoyuan will be launching more projects for sale in the second half of this year and is fully confident about achieving its full-year sales target of RMB7.5 billion."
Corporate Profile
Aoyuan is one of the leading property developers in Guangdong Province in China. Its projects are mainly located in Guangdong, Shenyang, Chongqing, Hunan, Jiangsu, Guangxi, and Jiangxi. The size of Aoyuan's land bank was 9.955 million sq. m. in 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.
