30 December 2013, Hong Kong—Fantasia Holdings Group Co., Limited(“Fantasia” or the “Company”, stock code:1777) is pleased to announce that, merely six days after the acquisition announced on 24December of Huizhou and Wuhan projects, one of its wholly-owned subsidiaries has entered into anequity transfer agreement and related agreementswith Shenzhen Yong Li Hong Ying Investment Co., Ltd. (“Yong Li Investment”). Pursuant to the equity transfer agreement, Fantasia secures land use right to a quality land parcel inDapeng New District, Shenzhen. The land parcel covers a total area of approximately40,000square meters and a total GFA of approximately38,100square meters.Currently, the construction projects for the land parcel have been nearly completed and are estimated to be delivered, examined and accepted no later than June 2014. The consideration for the project is approximately RMB800 million (equity interest and related creditor's rights inclusive), mainly comprised of the project’s previous costs incurred and bank and other related debts. The speedy acquisition of the quality project will further facilitate growth in Fantasia’s sales growth in the next 1 or 2 years.
Dapeng New District, where the land parcel is situated, renowned as the last “Peach Garden” in Shenzhen with over 70% of forest coverage rate. The New District is positioned to build an international tourism island and a world-class coastal ecological tourist resort. Currently, Dapeng New District has become the battlefield of the market for large property developers.Many property projects in Dapeng New District were well-received in the market and will inevitably become a key development zone in Shenzhen.
The land parcel is in Xinda-longqiwan area, an eastern hub on Dapeng Peninsula which possesses wonderful sea view. According to urban planning, the construction in this area will feature tourism service and public facilities. On the east of Yintan Road, the land parcel provides unobstructed sea view and a privately-owned beach. High-end tourism properties will be constructed and are expected to launch as early as 2014. It is known that the selling price of second-hand semi-detached or detached home units of similar quality which are on sale in the area reaches RMB100,000/square meter. Both the buyer and seller believe that with close cooperation between the two parties, the high-end vocation property would deliver decent returns after it is put on sale.
The Company has extensive experience in building properties for high-end customers as it launched numbers of high-end properties such as Chengdu Grande Valley, Dongguan Mont Conquerant and Guilin Lakeside Eden in the past 15 years. The Company has became a financial holding group engaged in eight sectors including real estate development, cultural tourism, property management, hotel management etc..The Company will take full advantage of this prime site after the acquisition and build high-quality landmark tourism properties providingsuperior quality and service in eastern Shenzhen.
The Company had announced the acquisition of land parcels in Huizhou and Wuhan just 6 days prior to securing this land parcel in Shenzhen, a sign that the Company intends to expand its presence in first and second-tier cities at a fasterpace. In the future, the Company would closely monitorthe property markets in first and second-tier cities such as Shenzhen and secure prime land parcels that will generate high return on investment.