Euro Asia Provides Update on Existing Projects
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Euro Asia Premier Real Estate Company Limited /
Euro Asia Provides Update on Existing Projects
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* Completion of Land Transfer Agreement for German Hotel
* Preliminary Planning of New Projects in Process
* Euro Asia to Present at Entry Standard Conference of Deutsche Boerse
Weifang (People's Republic of China), 26 April 2011
Euro Asia Premier Real Estate Company Limited (ISIN: VGG3223A1057) today
provides shareholders with an update of certain of its existing projects.
Patrick Chan, Vice Chairman for Euro Asia, stated, "The strength of the local
economy and our position in the Weifang market have allowed us to develop our
business model such that we have been able to accelerate shareholder value
creation by pursuing low risk, high return projects. We have worked diligently
on expanding our project portfolio and structuring this expansion in such a way
that we are actually strengthening our financial position, rather than
compromising it by taking on external debt."
German Hotel
On November 29(th), 2010, the Company announced it had entered into a non-
binding agreement with regards to the sale of the German Hotel. On April
15(th) 2011, Euro Asia completed the sales agreement for the German Hotel. We
have currently received a good faith refundable deposit of RMB 8 million
(approx. ?0.83 million*), and will receive an additional RMB 2 million (?0.21
million) by the end of April, 2011, at which point in time, the entire deposit
becomes non-refundable. The remaining purchase price balance of 62 Million RMB
(?6.5 million) will be received in two instalments of RMB 30 million (?3.1
million) on or before April 15(th) 2012, and RMB 32 million (?3.3 million) on or
before October 15(th), 2012.
Cloud Lake Training and Exhibition Center
The curtain wall of the Training and Exhibition Center has entered its final
stage and is nearing completion and internal improvements have commenced.
Furthermore, negotiations with a hotel management company concerning the
formation of a Joint Venture are continuing. Under the current framework, NIW`s
capital investment into project will be transferred to the joint venture partner
in return for a fixed fee plus a to be negotiated percentage of gross and/or net
income, along with the hotel`s management rights. In return, the partner will
invest into the lease hold improvements of the hotel, estimated at RMB 120
million (?12.6 million), and act as its operator. We estimate the management
contract negotiation will be completed in May, 2011 as opposed to March, 2011
and that contract is to commence in July, 2011.
China Agricultural Machinery Marketing Center
Site preparation at the China Agricultural Machinery Marketing Center continues
and a presale permit is expected to be received upon completion of Phase 1 outer
structure, in June, 2011.
Euro Asia has already received preliminary letters of interest from four anchor
tenants and we expect this interest to translate into a purchase commitment in
June, 2011. In regards to the additional 333,333.5 m(2) of land adjacent to the
site for phase II, Euro Asia expects negotiations to be completed and land
permits received by September 30(th), 2011 as opposed to March, 2011. This delay
is due to continuing negotiation over the land price and plot ratio for phase
2. Negotiations are in line with the original estimates for a purchase price of
less than RMB 175 million (?18.3 million).
Luxury Town Houses at Juilongjian
Of Euro Asia's 200,000 m(2) of land bank at the Juilongjian country park, we
expect to complete land permits documentation for 100,000 m(2) by the end of
June, 2011. The current plan is to develop 100 luxury town houses on the site at
approximately 400 m(2) GFA each. With preliminary designs currently under way,
we expect construction to begin as previously announced in August, 2011 and we
plan to have this project completed and sold by the 4(th) quarter of 2012. With
regards to the remaining 100,000 m(2), construction permits are expected by
October, 2011. Euro Asia plans to build a further 100 town houses on the
additional site. The selling price, size of unit, design and the timing of the
construction of the second phase is still subject to the pace at which the first
half sells.
Euro Asia Apartment Buildings
Euro Asia has to date received a total non refundable deposit of RMB 10 million
(?1.0 million) as opposed to a good faith deposit of RMB 2 Million as at
December 31(st), 2010. The balance of another 10 million RMB will be received
upon commencement of construction. We have currently paid the full RMB 15
million (?1.6 million) for the site to SNI.
Euro Asia has also received first round feedback from relevant departments on
the preliminary design of the Euro Asia Apartment Buildings. The height of the
building has been reduced by 20 meters, fixing the height at 61 meters or 11
stories. The adjusted GFA is 18,400 m(2) with the apartments in split level
design. The design changes are expected to receive approval comments by the end
of May, 2011. Under this revised timeline, construction is to start by July,
2011 with pre-sale commencing in October, 2011.
This reduction in zoning density is offset by an increase in targeted sales
price and will adjust the gross sale of the building to RMB 150 million from RMB
170 million (?15.7 and 17.8 million) and Euro Asia's participation in the
venture to RMB 50 million as opposed to RMB 60 million (?5.2 and 6.3 million)
net as previously announced on December 8(th), 2010.
Cloud Lake Apartments
The preliminary planning process was completed on April 1(st) and we have
submitted a revised plan for approval to the relevant authorities. This revised
plan increases the expected height of the venture from 19-24 stories to 26-30
stories with an increase in the expected GFA to 103,000 m(2 ), an increase of
23,000 m(2). The gross proceeds from this venture are now estimated to increase
RMB 424 million from RMB 340 million (?44.4 and 35.6 million) as announced in
January 13(th), 2011.
We expect planning for these buildings to be approved of in May, with initial
construction to commence at the end of September, 2011 and its completion by
June 2013.
Qing Zhou Apartments
We are still negotiating with a Joint Venture Partner, and have submitted
preliminary site plans and are still waiting for feedback. We expect that the
general terms with the joint venture partner will be as announced on February
16(th), 2011 concluded by approximately June 30(th), 2011. The initial targets
announced in February, 2011 remains unchanged.
Patrick Chan, Vice Chairman for Euro Asia, concludes, "As we can see from this
update, there are minor changes in planned developments when compared to
previous announcements. These changes will result in no material difference to
our forecasted earnings in 2011."
Euro Asia to Present on Deutsche Boerse Conference in Frankfurt
In order to update investors, analysts and media about the recent development of
the company, Management is pleased to inform that Euro Asia will be presenting
at the Entry & General Standard Conference of Deutsche Boerse AG on May
4(th), 2011 at 09:45 a.m. Please contact Euro Asia's investor relations
consultant if you wish to meet the management 1-to-1, for contact please see
below.
* Conversion rate: RMB 1 = ? 0.105
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: Entry Standard in Frankfurter Wertpapierbörse;
Press Release as PDF:
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Source: Euro Asia Premier Real Estate Company Limited via Thomson Reuters ONE
[HUG#1509084]
Unternehmensinformation / Kurzprofil:
Datum: 26.04.2011 - 15:49 Uhr
Sprache: Deutsch
News-ID 53872
Anzahl Zeichen: 10268
contact information:
Town:
Weifang City, Shandong
Kategorie:
Business News
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