6 May 2013, Hong Kong – Fantasia Holdings Group Co., Limited (“Fantasia” or “the Company”, Stock Code: 1777) announced Fantasia Investment Holdings Group Co., Limited (Hong Kong), a wholly-owned subsidiary company of Fantasia has successfully acquired the entire equity interest of a company (which is owned by an independent third-party) for a consideration of RMB282.5 million. Upon completion of the deal, Fantasia will own the property right of a residential property in Pudong District, Shanghai through the target company. The property covers a total planned GFA of approximately 17,563 square meters. The acquisition marks Fantasia’s initial entrance into Shanghai, further replenishes the land-bank in first-tier and second-tier cities since the previous auction made in Chengdu on 20 April 2013.
The project is located in Xiangcheng Road, Pudong New District in Shanghai, a supreme location where is in the Zhuyuan Business District and only 5-kilometers away from Lujiazui Financial District, The project is next to the Century Avenue subway station, an interchange station of 4 subway lines. Located in CBD core commercial circle, the district is extensively equipped with office buildings and hotels, which brings an obvious demand for residence, whether in short term or middle to long term, while small apartments have higher price premium and potential and room for value enhancement. The project is currently developed as serviced apartment and will be escalated to a deluxe apartment project in Lujiazui CBD.
Fantasia has already entered into different cities in the Yangtze River Delta region including Shanghai, Nanjing, Suzhou and Wuxi. The present acquisition in Shanghai will further strengthen Fantasia’s influence in the Yangtze River Delta region and implement its regional strategic adjustment as planned in early 2013 in returning first-tier and second-tier cities. The project will be launched for sale within this year to further boost the Company’s annual sales growth.
Quoted from Mr. Pan Jun, Fantasia’s Chairman and Chief Executive Officer, “Yangtze River Delta is the region which enjoys the strongest integrative strengths and the most-balanced development. Due to its extensive geographic coverage and strategic development, the cities in this region shall become important focuses for the growth of China’s real estate industry. In the future, Fantasia will continue to pay strong attention to any potential opportunities first-tier and second-tier cities in the Yangtze River Delta region and replenish land bank under an “active and prudent” land acquisition strategy."