Xinyuan acquires a land parcel in Sanya Yazhou Bay for RMB356.9 million
Xinyuan Real Estate Co., Ltd. ("Xinyuan" or "the Company"), a residential real estate developer with a focus on high growth cities in China, today announced that it has recently acquired two land parcels.
The first land parcel is located in Tianfu New District, a new economic zone in Chengdu City, the capital city of southwest China's Sichuan province. The land parcel offers a site area of approximately 75,038 square meters. Xinyuan paid a total of RMB933.8 million (approximately US$153.8 million) for the land use rights. The Company plans to develop high rise residential apartments on this land parcel for a total estimated gross floor area of approximately 225,024 square meters with an average estimated floor price of approximately RMB4,150 per square meter.
The Company acquired a second land parcel in Sanya City, Hainan province, through the acquisition of a local private-owned real estate company in Sanya. This land parcel is located in Yazhou Bay of Sanya City. Yazhou Bay is located in the west of Sanya, one of the five famous bays in Sanya and the last one under development. An express train station is under development in the Yazhou Bay area by the Sanya city government, with plans to construct a new airport in the area. The land parcel offers a site area of approximately 78,831 square meters. Xinyuan paid a total of RMB356.9 million (approximately US$58.9 million) for the land use rights. The Company plans to build SOHO apartments for sale on this land parcel for a total estimated gross floor area of approximately 118,245 square meters.
Mr. Yong Zhang, Chairman of Xinyuan, commented, "We are pleased to have increased our project under planning inventory in Chengdu, a thriving market where we have developed two projects in the past years. We are also excited to enter Hainan market, a premier vacation destination in China. In recent years, purchasing holiday properties has become increasingly popular. Sanya has been the most popular domestic tourist destination for four consecutive years. With today's announcement, we have acquired eleven new land parcels (for a total of seven development projects) in the past six months. We are encouraged with the progress of all of our active development projects and are confident that these projects will lead to strong pre-sale revenue in 2014."
SOURCE: The Wall Street Journal
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