Further Investment in Chongqing Property Market Enhances Aoyuan's Brand Influence in the Southwestern City
HONG KONG, Aug. 8, 2013 /PRNewswire/ -- China Aoyuan Property Group Limited ("Aoyuan" or the "Company", together with its subsidiaries the "Group"; Stock Code: 3883), one of the leading property developers in Guangdong Province in China, is pleased to announce that the Group acquired a land parcel for commercial and residential use in Chayuan New District, Nan'an, Chognqing at a public auction at a consideration of RMB970 million on 5 August 2013. The Group will fund this acquisition with its internal resources.
The land parcel is situated to the west of a public rental housing estate ("Chengnan Jiayuan") in Chayuan New District, Nan'an, Chongqing. It is ideally located adjacent to the Nan'an government building and the Chongqing Aoyuan Shuiyunjian project, and is set to receive benefit from the neighboring premium ecosystem. In addition, the infrastructure surrounding the site is well developed, enjoying convenient transportation access, and a multitude of full amenities coverage including schools, government offices, a post office and a park. The land parcel occupies a site area of approximately 195,145 sq. m., and is expected to be developed into an aggregate of 313,524.8 sq. m. in planned GFA. Prior to this land acquisition, the Group had already established a strong brand in the Chongqing market, including well-known projects of Chongqing Aoyuan.Health City, Chongqing Aoyuan.Jinyu, Chongqing Aoyuan.The Metropolis, and etc. This land parcel, being strategically in proximity to the Group's existing Chongqing Aoyuan Shuiyunjian project, acquired through auction in February this year, will allow the Group to achieve more holistic development within the same region and sharing of resources.
Mr. GUO Zi Wen, Chairman of Aoyuan, said: "Aoyuan has entered into a phase of rapid development. It has achieved satisfactory contracted sales since the beginning of this year. For the first seven months ended 31 July 2013, Aoyuan achieved total contracted sales of approximately RMB4.42 billion, up 79.3% YoY, thereby completed 58.9% of its full-year sales target of RMB7.5 billion. Furthermore, the Group will continue to identify opportunities in the land market. Including this land acquisition in Chayuan in Chongqing, the Group has so far made six acquisitions of prime-quality projects, thereby strengthened our land bank to support our future development. In the future, we will keep ourselves abreast of the latest developments in the market and strive to establish our footholds in districts with strong owner-occupier demand, less prone to austerity measures by the Central Government, suitable for implementing our ‘rapid development and rapid sales' strategy and where the Group already has presences in, such as Guangdong and Chongqing, etc. Looking forward, we will continue to deepen our penetration into these markets, while gradually expand our geographical footprint, while adhering to our strategy of developing commercial and residential properties in parallel and achieving an optimal balance in proportions of these two major product lines."
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. 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.
