Project Acquisition and Joint Venture for Residential Development in Weifang City
(Thomson Reuters ONE) -
Euro Asia Premier Real Estate Company Limited /
Project Acquisition and Joint Venture for Residential Development in Weifang
City
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The issuer is solely responsible for the content of this announcement.
* Good faith deposit received from prospect Joint Venture Partner
* Pre-tax gain for project estimated at RMB 60 million
* Euro Asia's net profits expected to more than double in 2011
Weifang (People's Republic of China), 08 December 2010
Euro Asia Premier Real Estate Company Limited (ISIN: VGG3223A1057) today
announced that the Company has entered into a Definitive Sales and Purchase
Agreement for the transfer of the land purposed for a residential development in
the Kuiwen district in Weifang City, the city's economic heart. This furthers
the cooperative agreement between Euro Asia and Shangdong New Industries, Co.
(SNI).
The site consists of 3,623 m², with a planned construction area of 32,572 m² for
mixed residential and commercial use, as well as parking space. The total
purchase price is RMB 15 million (Euro 1.7 million), payable by Euro Asia's
subsidiary Weifang Xinpu Industrial Co. Ltd. by January 31(st), 2011.
Euro Asia has agreed terms with a prospect a joint venture partner who will
assume all development costs of this project, estimated at just under RMB 59
million (Euro 6.7 million). In return, the partner will own 50% of the joint
venture. Additionally, the proposed joint venture partner will pay RMB 20
million (Euro 2.3 million) to Euro Asia for its land contribution.
Patrick Chan, Vice Chairman for Euro Asia, stated, "This is an exciting new
project for us. Firstly, as we stated upon going public, we are building a
strong project pipeline through our close relationship with SNI. This
particular project is an ideal fit for us as it meets the need for both
residential accommodation and commercial space in the economically vibrant core
of Weifang City."
"Furthermore, by signing up a joint venture partner under the terms agreed, we
significantly reduce our risk of exposure and at the same time are ready to
start building as soon as the required state permits have been received. In
this way, we accelerate cash flow generation and build further value into the
company. Kuiwen is a signature deal for us, with two similar projects that are
currently under negotiation."
The prospect partner to date has paid a RMB 2 million (Euro 230,000) good faith
refundable deposit. The RMB 18 million (Euro 2.0 million) balance will be paid
by January 15(th), 2011. Euro Asia expects total sales of the units in the
development to total an estimated RMB 170 million (Euro 19.2 million).
Construction will commence March 2011 and be completed by June 30(th), 2012.
Pre-sales are expected to commence in May 2011 and the project is expected to be
fully sold by December 2012. Euro Asia's estimated pre-tax gain is RMB 60
million (Euro 6.8 million).
Patrick Chan concluded: "With our annual rental income and proceeds from deals
currently under negotiation, we expect to increase Euro Asia's net pre-tax
profit from an expected RMB 111 million (Euro 12.6 million) in 2010 to RMB 275
(Euro 31.2 million)."
About Euro Asia
Euro Asia is a BVI registered company, active in real estate development in the
Shandong area of the People's Republic of China. The Company operates locally
through its subsidiaries, jointly owned with SNI, a leading local development
company. Generating leasing revenues from a number of commercial properties, the
Company has a number of other projects under development. By utilizing its
strong local network to banks, political decision makers, land owners and other
developers, the Company intends to grow its position in the region prior to
moving into other prefecture-level cities.
Contact:
Schwarz Financial Communication
Frank Schwarz
Tel: +49 611 1745 398 11
Schwarz(at)schwarzfinancial.com
--- End of Message ---
Euro Asia Premier Real Estate Company Limited
Jian Hong East Street No 316 Weifang City, Shandong China
Listed: Xetra Stars in Frankfurter Wertpapierbörse;
Press Release as PDF:
http://hugin.info/143073/R/1469834/407083.pdf
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Source: Euro Asia Premier Real Estate Company Limited via Thomson Reuters ONE
[HUG#1469834]
Unternehmensinformation / Kurzprofil:
Datum: 08.12.2010 - 09:30 Uhr
Sprache: Deutsch
News-ID 49513
Anzahl Zeichen: 5433
contact information:
Town:
Weifang City, Shandong
Kategorie:
Business News
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