Xinyuan Real Estate Co., Ltd. Acquires Additional Parcel of Land in Zhengzhou

2009-12-23 17:06 2898

BEIJING, Dec. 23 /PRNewswire-Asia/ -- Xinyuan Real Estate Co., Ltd. ("Xinyuan" or "the Company") (NYSE: XIN), a residential real estate developer with a focus on high growth, strategic Tier II cities in China, today announced that it has acquired another parcel of land in downtown Zhengzhou, the capital city of central China's Henan Province.

Xinyuan paid a total of RMB473 million (approximately US$69 million) for the unencumbered land use rights for the Zhengzhou parcel, which offers a total site area of approximately 45,356 square meters. Based on pre-planning of the proposed development projects, consisting of high rise and multi-layer residential apartments of 70-120 square meters, the parcel of land located in the Jinshui district of Zhengzhou is expected to generate an estimated gross floor area of approximately 130,000 square meters. The Company expects to begin construction on this parcel in July 2010 with pre-sales starting in October 2010.

"This acquisition marks the third land acquisition for Xinyuan in Zhengzhou this year," said Mr. Yong Zhang, Xinyuan's Chairman and Chief Executive Officer. "Jinshui district is the financial and cultural center of Zhengzhou. The transaction volume of this district accounted for approximately 40% of Zhengzhou's volume in the first eleven months of this year. The average selling price per square meter in the area immediately surrounding our acquired parcel ranges from RMB6,800 to RMB14,000, which is significantly higher than the average selling price of our projects in other areas of Zhengzhou. We believe this parcel is very well positioned for solid sales and will generate superior profitability. We are continuing to build Xinyuan's presence in Zhengzhou and positioning the company for solid growth through a steady development pipeline in 2010."

About Xinyuan Real Estate Co., Ltd.

Xinyuan Real Estate Co., Ltd. ("Xinyuan") (NYSE: XIN) is a developer of large scale, high quality residential real estate projects aimed at providing middle-income consumers with a comfortable and convenient community lifestyle. Xinyuan focuses on China's Tier II cities, characterized as larger, more developed urban areas with above average GDP and population growth rates. Xinyuan has expanded its network to cover a total population of over 34.5 million people in six strategically selected Tier II cities, comprising Hefei, Jinan, Kunshan, Suzhou, Zhengzhou and Chengdu. Xinyuan is the first real estate developer from China to be listed on the New York Stock Exchange. For more information, please visit http://www.xyre.com .

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the ''safe harbor'' provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Statements that are not historical facts, including statements concerning our beliefs, forecasts, estimates and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including, but not limited to, the risk that: our financing costs are subject to changes in interest rates; our results of operations may fluctuate from period to period; the recognition of our real estate revenue and costs relies on our estimation of total project sales value and costs; we may be unable to complete our property developments on time or at all; any construction delays, or failure to complete a project according to our planned specifications or budget, may delay our property sales, which could harm our revenues, cash flows and our reputation; the recognition of our real estate revenue and costs relies upon our estimation of total project sales value and costs; we may forfeit land to the PRC government if we fail to comply with procedural requirements applicable to land grants from the government or the terms of the land use rights grant contracts; we may fail to obtain, or may experience material delays in obtaining, necessary government approvals for any major property development, which will adversely affect our business; increases in the price of raw materials may increase our cost of sales and reduce our earnings; we are heavily dependent on the performance of the residential property market in China, which is at a relatively early development stage; PRC economic, political and social conditions as well as government policies can affect our business, and other risks outlined in our public filings with the Securities and Exchange Commission, including our annual report on Form 20-F for the year ended December 31, 2008. All information provided in this press release is as of December 23rd, 2009. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

For more information, please contact:

In China:

Mr. Tom Gurnee

Chief Financial Officer

Tel: +86-10-8588-9390

Email: tom.gurnee@xyre.com

Ms. Helen Zhang

Director of Investor Relations

Tel: +86-10-8588-9255

Email: yuan.z@xyre.com

In the United States:

Mr. Bill Zima