Fantasia acquires land in Dongguan at low cost

June 14, 2010, Hong Kong - Fantasia Holdings Group Co., Ltd. (hereinafter referred to as "Fantasia" or the "Company"; Stock code 1777) announced today that the Company would acquire 100% of the equity interests of Dongguan Huaqianli Property Development Company Limited (hereinafter referred to as “Huaqianli”) for a total consideration of RMB317,650,000.  Huaqianli owns land occupying an area of approximately 96,862.6 square meters in the Bei An District of Huangjiang Town, Dongguan City.  Upon completion of the acquisition, Fantasia’s plans for the Huangjiang Development Project will feature a combination of high-end villas and low-rise plus multi-storey residential apartments.  This development would be within an easy commute from Shenzhen but allow people to live in the popular region of Dongguan.  The project would be another high-end property development by Fantasia in the area, following its first Mont Conquerant project in the Dongguan City, and is expected to further boost the Company’s business scale and presence in the “Greater Shenzhen” area.


Huangjian is well known for its logistics services and is an economically important town located towards the central southern part of Dongguan.  Fantasia’s Huangjiang Development Project is only 25 minutes’ drive to Futian of Shenzhen and will bring the two cities of Shenzhen and Dongguan closer, allowing more people to live in one city and work in the other.  To the west of the Huangjiang project is the Huangjiang River and a continuous stretch of native forest landscapes, which offers an urban “green lung” for its residents.


With a floor area ratio of 2.5, the Huangjiang Development Project would have a gross floor area of up to 242,100 square meters.  The land cost, at approximately RMB1,300 per square meter of planned floor area, is substantially lower than similar developments in the area by other real estate developers, which stand at above RMB2,500 per square meter.  This is in line with Fantasia’s prudent and cost-effective approach to land acquisition, and will allow the Company to achieve superior returns on investment.


Fantasia was able to use the recent downturn in China’s property market as a good opportunity to acquire further quality land at low cost.  The successful acquisition of the Dongguan acreage, adding to Fantasia’s high quality land bank, combined with the Company’s solid capital position reinforces its leading position in the Pearl River Delta region.


In 2008, when the market weakened, Fantasia also acted swiftly and capitalised on the opportunities that presented themselves to acquire an array of quality land parcels.  This resulted in the construction of Dongguan Mont Conquerant, Chengdu Meinian International Plaza, Chengdu Future Plaza, Tianjin Hailrun Plaza and Chengdu Grand Valley, developments which helped build a solid foundation for the Company.  Since the beginning of 2010, Fantasia has accelerated its pace of high quality land acquisitions in Dali, Suzhou, Guilin and Tianjin.  With the acquisition of the Dongguan land, the Company's total landbank now amounts to 13.42 million square meters, which is sufficient for further development over the next three to five years.  Maximising on the latest market correction, Fantasia is confident that, combined with its prudent and cost-effective approach to land acquisition, it can outperform its peers and generate even better shareholder value through delivering on its strategy of "Blossoming China".