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8-K - China Housing & Land Development, Inc. | v206167_8k.htm |
Exhibit
99.1
XI'AN,
China, Dec. 20, 2010 /PRNewswire-Asia-FirstCall/ -- China Housing & Land
Development, Inc., ("China Housing" or the "Company," Nasdaq: CHLN) today
announced that the Company has signed an agreement detailing investment plans
with the Xi'an's Baqiao district government to acquire land use rights to a 107
acre tract of land within its 487 acre Baqiao development project for the
development of a new real estate housing project. With this newly added
project, China Housing will have three residential projects underway in Xi'an's
Baqiao District, totaling 1.65 million square meters of gross floor area. Upon
signing an extended agreement with the Baqiao Government, the Company will still
have 282 acres of undeveloped land in Baqiao District.
China
Housing has agreed in its investment plans with the district government to pay
approximately RMB500 million (US$75 million) in installments from 2011 to 2012
to acquire the land use rights to the 107 acre parcel of land. Of the
total area of land, approximately 70 acres of land will be used for residential
and commercial development while the remaining land will be used for the
development of a 37 acre park. The Company intends to develop mid-upper
income residential and commercial units on the site with an estimated GFA of
630,000 square meters. The project is located in a mature commercial community
surrounded by a subway station, a key high school, and a major shopping mall
that are currently under development. The development period of the
project is expected to begin in the third quarter of 2012 and is estimated
to last approximately five years. The Company anticipates that this new
development project will generate revenue of approximately RMB4.3 billion
(US$646 million) and net income of approximately RMB700 million (US$105 million)
over the life of the project. China Housing will be responsible for
the development of the park and the cost of the park development will serve as
part of the land acquisition payment. The park is scheduled to commence
construction in the fourth quarter of 2011. Development of the park is
expected to last one year. Once completed, the ownership of the park will
be transferred to the local government.
Mr.
Pingji Lu, the Chairman of China Housing, said, "We are pleased to add another
high profile project to our development portfolio. This project will be financed
mainly through internally generated funds and bank loans and our payment
installment plan with future banking institutions will allow for stabilized cash
flows during the development of this project. This new project is situated in a
vibrant location with developing subway, residential, commercial and education
facilities nearby. With two other projects in the Baqiao district, we are
pleased to broaden our strategic scope in this area, where we believe the local
government plans to continue to invest heavily in infrastructure and development
projects. Economic growth in Xi'an remains healthy and we continue to design and
develop innovative projects that appeal to a growing customer base. We continue
to evaluate new growth initiatives and remain highly focused on enhancing our
revenue and profit opportunities in the coming years ahead."
About
China Housing & Land Development, Inc.
Based in
Xi'an, the capital city of China's Shaanxi province, China Housing &
Land Development, Inc., is a leading developer of residential and commercial
properties in northwest China. China Housing has been engaged in land
acquisition, development, and management, including the sales of residential and
commercial real estate properties through its wholly-owned subsidiary in China,
since 1992.
China
Housing & Land Development is the first and only Chinese real estate
development company traded on NASDAQ. The Company's news releases, project
information, photographs, and more are available on the internet at www.chldinc.com.
Safe
Harbor Statement
This news
release may contain forward-looking information about China Housing & Land
Development, Inc. which is covered under the safe harbor for forward-looking
statements provided by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are statements that are not historical facts. These
statements can be identified by the use of forward-looking terminology such as
believe, expect, may, will, should, project, plan, seek, intend, or anticipate
or the negative thereof or comparable terminology, and include discussions of
strategy, and statements about industry trends and China Housing & Land
Development's future performance, operations, and products.
Such
statements are subject to risks and uncertainties that could cause actual
results to differ materially from those projected. Actual performance results
may vary significantly from expectations and projections. Further information
regarding this and other risk factors are contained in China Housing's public
filings with the U.S. Securities and Exchange Commission. All information
provided in this news release and in any attachments are as of the date of the
release,
and the companies do not undertake any obligation to update any forward-looking
statement as a result of new information, future events or otherwise, except as
required under law.
China
Housing contacts
|
Mr.
Cangsang Huang
Chief
Financial Officer
+86
29 8258 2648 in Xi'an
chuang@chldinc.com
|
Ms.
Jing Lu
Chief
Operating Officer, Board Secretary, and Investor Relations
Officer
+86
29.8258.2639 in Xi'an
jinglu@chldinc.com
|
Mr.
ShuaiLuo
Investor
Relations
+86
29.8258.2632 in Xi'an
laurentluo@chldinc.com
|
Mr.
Bill Zima, ICR
+1
203.682.8233
William.Zima@icrinc.com
|
Ms.
Annie Chen, ICR
+86
10.6599.7966
Annie.Chen@icrinc.com
|