Weifang, People’s Republic of China, 16 February 2011
Euro Asia Premier Real Estate Company Limited (ISIN: VGG3223A1057, ISIN: VGG3223A1131) today announced that further to its Cooperative Agreement with Shandong New Industries, Co., has signed a Definitive Sales and Purchase Agreement through Weifang Xinpu Industrial Co. Ltd. for and on behalf of Euro Asia Premier Real Estate Company Limited. The deal concerns the transfer of land purposed for a real estate development in Qingzhou City.
The site consists of 14,463.1 m² of land, with a planned construction area of 51,000 m² for mixed residential and commercial use, as well as parking space. The total purchase price for the land is RMB 30 million (Euro 4 million*), payable by Weifang Xinpu Industrial Co. Ltd. 30 days after receipt of all building and construction permits.
Euro Asia has reached a preliminary agreement with a prospect joint venture partner who will assume all development costs of this project, estimated at around RMB 91.8 million (Euro 10 m) in exchange for 50% of the joint venture. Additionally, the proposed joint venture partner will pay RMB 40 million (Euro 5 m) to Euro Asia for its land contribution, RMB 5 million (Euro 0.6 m) of which will be a refundable deposit. The remaining RMB 35 million (Euro 4 m) will be paid on March 31st, 2011.
Patrick Chan, Vice Chairman for Euro Asia, stated, “This is yet another exciting signature deal for us, similar to the project in Kuiwen which we had announced at the end of 2011. Qingzhou is a vibrant economic area in the west of Weifang City, with a strong industrial presence as well as a centre for agricultural production. This project meets the increasing local need for mid to high end housing, while at the same time addressing the need to have commercial space in or near new residential developments.”
“As with our other signature deals, by signing a JV partner who will take on the development costs, we have an extremely low risk exposure, allowing the Company to pursue new projects as and when opportunities arise.”
The initial plans for this project have been submitted to the relevant government departments for construction/zoning permits, which the Company expects to receive by May 31st, 2011. Construction for the project is expected to commence late spring 2011 with completion by the end of 2012.
Euro Asia expects total sales from the project to come to just over RMB 200 million (Euro 23 m), with a pre-tax gain to the Company of RMB 46 million (Euro 5 m).
* Conversion rate: RMB 1.00 = Euro 0.11
Presentation at the DVFA Real Estate Conference, Frankfurt, Germany
Euro Asia Premier Real Estate Company Limited is pleased to announce that Mr. Patrick Chan, Vice Chairman of the Company, will present at the 6th Annual Real Estate Conference of the German Association of Investment Professionals (DVFA) in Frankfurt on 22 February 2011. Euro Asia’s Company Presentation will be held at 14:25h.