Oct 30 2009
Xinyuan Real Estate Co., Ltd. ("Xinyuan" or "the Company") (NYSE: XIN), a residential real estate developer with a focus on high growth, strategic Tier II cities in China, today announced that it has acquired an additional parcel of land in eastern Zhengzhou, the capital city of central China's Henan Province.
Xinyuan paid a total of RMB395 million (approximately US$58 million) for the unencumbered land use rights for the parcel, which offers a total site area of approximately 56,100 square meters. Based on pre-planning of the proposed development projects consisting of high rise residential apartments of 70-150 square meters, this parcel of land in the Zhengzhou East Development Area is expected to generate an estimated gross floor area of approximately 196,000 square meters. The Company expects to begin construction on this parcel in the Zhengzhou East Development Area in April 2010 with pre-sales starting in September 2010.
"This is the second land acquisition Xinyuan has completed in the East Development Area of Zhengzhou in the past month as we continue to seek attractive locations in this high growth area," said Mr. Yong Zhang, Xinyuan's Chairman and Chief Executive Officer. "The Zhengzhou East Development area is a high-end community that has enjoyed above-average sales price and volume growth compared to Zhengzhou overall. GFA sold in the area through September 2009 was approximately 990,000 square meters and has exceeded the 2008 GFA level of 900,000 square meters. Over the next three to five years, the estimated GFA sales in this area are expected to reach 2 to 3 million square meters per year. We are encouraged by the growth potential in the East Development Area and in Zhengzhou overall as we continue to look for opportunities to expand our footprint and bolster our long-term growth profile."
Source: http://www.xyre.com/