Fantasia Purchases Land in Chengdu Once Again, Continue to Strengthen Land Bank in Second-tier Cities

17 April 2013, Hong Kong – Fantasia Holdings Group Co., Limited (“Fantasia” or “the Company”, Stock Code: 1777) announced the acquisition of a parcel of land in Pi County, Chengdu for RMB181.7million by Chengdu Fantasia Property Development Co, Ltd. the subsidiary company of Fantasia. The parcel of land is designed for residential and commercial use with the gross floor area (“GFA”) of 129,814 square meters. This is the second time for the Company to win the land bidding in Chengdu since last acquisition occurred on February 2013.

The parcel of land is located in Pitong Town, Pi County, Chengdu. As an essential component of Chengdu and a new center of the North West Chengdu, Pi County engages in building ideal urban complex for both residence and business. With steady economic and urbanization development, some large enterprises, such as Foxconn has entered Pi County. The strong purchasing power from those staffs can brace the real estate market of Pi County. 

The district is equipped with perfect ancillary facilities, such as schools, shopping malls, hospitals, restaurants and recreation facilities, hotels and so on. In addition, the district provides well-developed traffic system such as Chengguan Express Railway, IT Road, Subway Line 2, and Chengguan Express. The parcel of land is closely connected to the Wang Cong Cultural Park, the No.1 culture project in Pi County. Wang Cong Cultural Park is a complex integration with different sectors, such as big cultural shows, tourism, entertainments and so on. It will be another urban cultural name card for Chengdu. The acquisition in Chengdu suburb will further strengthen Fantasia’s land bank in the Chengdu-Chongqing Economic Zone, which will also consolidate the Company’s leading position in Chengdu’s real estate market.

Chengdu is important revenue contributor for Fantasia, bridgehead in cross-regional development, as well as the center of the Southwest area. In 2012, the GFA sold and contract sales in Chengdu-Chongqing zone attribute approximately 35% and 30% of the total property contract sales area and total contract sales to the Group, respectively.

Quoted from Mr. Pan Jun, Fantasia’s Chairman and Chief Executive Officer, “Chengdu-Chongqing Economic Zone is one of the economic regions which enjoy the highest potential for development in China. After ten years of development, the property market in this zone has become more mature. Chengdu shall become the strategic economic region for modern services industry and new high-technology industry driven by its systematic planning for the transportation development." Mr. Pan Jun also expressed that the Company will continue to pay strong attention to first-tier and second-tier cities, and look for high cost-effective projects.