HONG KONG, Oct. 10, 2014 /PRNewswire/ -- Modern Land (China) Co., Limited ("Modern Land" or the "Company", together with its subsidiaries, the "Group", stock code: 1107), a leading real estate developer in the architectural energy-saving field in the PRC, was pleased to announce that the Completion of the Joint Venture Agreement that the Company signed on 10 September 2014 with Joint Venture Company, Modern Land (HKNo.1) Limited ("Modern Land (HKNo.1)"), Great Wall Pan Asia International Investment Co., Limited ("Great Wall") and Project Companies has taken place.
Following the Completion, the Joint Venture Company is now owned as to 51% by the Company and 49% by Great Wall respectively. The Joint Venture Company, through Modern Land (HKNo.1), owns the equity interests in the Project Companies for the purpose of the joint venture. The terms of the Joint Venture Agreement provides that, subject to Completion, each of the Company and Great Wall will provide certain management services to the Joint Venture Company for a period of 3 years, respectively. On 29 September 2014, Great Wall, the Joint Venture Company and the Company entered into a management service agreement (the "Great Wall Management Agreement"), pursuant to which Great Wall shall provide management services to the Joint Venture Company and its subsidiaries including liquidity control, budget control, operational supervision, recruitment, financing, brand building and related consultancy services. On the other hand, the Company entered into a separate management service agreement on 29 September 2014 (the "ListCo Management Agreement") in respect of management services to be provided by the Company to the Joint Venture Company and its subsidiaries.
It was provided in the Joint Venture Agreement that the parties shall enter into the Great Wall Management Agreement upon Completion. Through the Great Wall Management Agreement and the List Co Management Agreement, Great Wall and the Company will be able to receive from the Joint Venture Company a service fee of RMB10,375,000 every 3 months, respectively. Therefore, the Great Wall Management Agreement is an integral part in the formation of the joint venture under the Joint Venture Agreement and allows both the Company and Great Wall to share the profits of the joint venture.
Mr. Zhang Lei, Chairman and Executive Director of the Group said, "The Joint Venture Agreement and its related arrangements provide an additional source of funding and improve the cash flow position to the Group to develop its properties. It also enables both parties to share financing, investment and asset management resource which will maximize the economic benefits as well as the shareholder value of both the Company and Great Wall. As our company is the real estate developer focusing on the architectural energy-saving field, the Group is devoted to explore diversified cooperation methods. In the future, the Group will not only stick to the development philosophy of 'Simple Focus and Endless Vitality' and address the product philosophy of 'green, comfortable, energy-saving and full life cycle', we will also strengthen the internal control, expand domestic and overseas financing channels, and increase the marketing capability as well as the 'low cost, high gross profit and high focus' dominant strategies in order to strive for great economic return for shareholders."
About Modern Land (China) Co., Limited
Established in 2000 in Beijing, Modern Land is a leading real estate developer of environmental and energy-saving properties, and concentrates on developing energy-efficient and comfortable living environment with property development projects in Beijing, Taiyuan, Changsha, Nanchang, Wuhan, Hefei, Suizhong, Jiujiang and Xianta. The Group possesses strong capabilities in R&D while integrating advanced energy-saving technologies. Through its "MOMA" energy-saving system, the Group is able to integrate various sustainable development techniques in terms of comfortable and sustainable property development and provide comprehensive systematic solutions. The Group has three product lines: Wan Guo Cheng ΜΟΜA, Shang Pin Ge ΜΟΜA and Man Ting Chun ΜΟΜA, all equipped with and will continue to adop the applications of the Group's core technology system.
For further information, please contact:
Porda Havas International Finance Communications Group
Kelly Fung
+852-3150-6763
kelly.fung@pordahavas.com
Angie An
+852-3150-6736
angie.an@pordahavas.com
Sam Fang
+852-3150-6721
sam.fang@pordahavas.com
Lyrica Zhang
+852-3150-6752
lyrica.zhang@pordahavas.com
Fax: +852-3150-6728
