Fantasia acquires land in Chengdu at low cost

Fantasia Holdings Group Co., Limited (hereinafter referred to as "Fantasia" or the "Company"; Stock code 1777) signed an equity transfer contract to acquire a 100% interest in Chengdu Noah Co., Ltd, from Shenzhen Noah. Co. and Sichuan Huali Investment Group Co., Ltd for a total consideration of RMB 100 million. 

Upon the completion of the acquisition and through Chengdu Noah Co., Ltd, Fantasia will own a commercial and financial-use land site in Tianfu New Town in southern Chengdu. This well-located site comprises a total land area of 16,565 sq.m and includes a total planned construction area of 165,845 sq.m. The company plans to build an integrated urban complex offering Grade A office space, high value LOFT space and premium apartments with strong investment potential.

The land cost, at approximately RMB 750 per square meter of floor area planned, is much lower than the average of RMB 2,000 in this area. Its low cost should allow the Company to achieve promising investment returns. This is Fantasia’s fourth urban complex to be developed in Chengdu, following Hailrun Plaza, Meinian International Plaza and Future Plaza. The total construction area of the above four projects will reach 1,400,000 sq.m, providing a concrete foundation for Fantasia’s long term growth in Chengdu.

Chairman Pan commented: “Fantasia’s principle is to buy high quality land during “bear” markets and sell property projects during “bull” markets”. Since the beginning of 2010, Fantasia has acquired land plots in Suzhou, Wuxi, Tianjin, Guilin, Dali, and Chengdu according to the prudent land principles. The above projects with confirmed rights and under framework agreements are expected to provide a saleable area of approximately 3.35 million square meters.  As of August 31, 2010, the total area of the Company's land bank totaled 13.47 million square meters.