[7th December, 1999, Hong Kong] - Hopson Development Holdings Limited ("Hopson Development" or the "Company", together with its subsidiaries, the "Group"(stock code:754) is pleased to announce that the Group will enter into various transactions for the development of large-scale property projects. Following the completion of the transactions, the Group is able to enlarge its land bank substantially, thus paving the way for its future development.
The Group will enter into agreements for the development and construction of a large-scale residential project, (named as Huanan New City provisionally), in Panyu of Guangdong Province. In addition, the Group has enlarged the site area of Pleasant View Garden by acquiring additional pieces of adjoining land.
Huanan New City is located between the south of Zhujiang River bank and the north of South Road in Panyu and is in close proximity to the centre of Tianhe District. The Group will jointly develop the project with Panyu Zhujiang Property Limited ("Panyu Zhujiang") and has an equity interest of 60% in the project.
In order to enlarge the development scale of Pleasant View Garden, the Group will acquire the pieces of land nearby. The acquisition of land will enable the Group to combine the adjoining land for development purposes so that the Group will enjoy economies of scale and reduce costs. Such development plan will also facilitate project planning as well as the provision and construction of corresponding facilities and amenities. The Group's equity interest in the project is over 50%.
Details of the Huanan New City and Pleasant View Garden
The Group has also announced that it may appoint Guangzhou Zhujiang Construction Company as the main contractor in respect of construction works to be carried out on property development projects. The appointment of Guangzhou Zhujiang Construction Company enables the Group to control project cost and to maintain the quality of work. Besides, the Group also intends to appoint Guangdong Esteem Property Services Ltd., to which the Group has 90% stake, to manage all the properties developed by the Group's joint ventures. Such appointment reflects Hopson Development's commitment to upgrading the services enjoyed by the individual owners of the Group's projects and to ensure those projects' integrated quality.
In relation to the existing project, the Group has proposes to enter into a supplemental agreement amending the original joint venture agreement of Gallopade Park. The amendment allows the Group to have a 95% sharing in the profits of Gallopade Park. According to the original agreement, the Group only has a 70% sharing in the gross floor area of the project. The Group believes that Gallopade Park, being the best-selling project of the Group in this year, has immense development potential. Such supplemental agreement will increase the Group's interest in the development project and will bring long term benefits to the Group.
In addition, the Group will also enter into a supplemental agreement amending the original agreement of Riverside New City. The amended agreement allows the Group to have a 40% stake in the project Riverside New City (previous 17.5%). The Directors believe that Riverside New City, in view of its prime location in Haizhu District, has very good development potential and will be contributing significantly to the Group's profits in the years to come.
Mr Stones Tse, Managing Director of Hopson Development said, "Hopson Development has already established itself as one of the leading property developers in Guangzhou City with prominent position in the marketplace. However, in the highly competitive market, we must always keep track of valuable business opportunities to maintain our business growth. We believe that the Group's long-term success lies in its ability of land bank replenishment. We are very delighted that the Group is able to enlarge its land bank and property portfolio through a number of property development transactions."
"Besides, we are confident that following China's entry into the WTO and the full implementation of housing reform, demand for commodity property with integrated quality will continue to rise. The Group will pro-actively acquire more quality sites and to develop large-scale commodity projects to capture the surging demand for commodity housing."
Mr Tse concluded, "In the past few years, the key success factor of the Group is to develop large-scale and high quality residential projects with a wide range of amenities and public facilities. Looking ahead, we will strive to reinforce our reputation as a quality residential developer in the exciting yet highly competitive business environments. We will capitalize on our sizeable and low-cost land bank, proven track record and market reputation to explore the immense market potential and strive for better returns for our shareholders.
For more information, please contact:
iPR Asia Ltd.
Natalie Tam/ Tina Law
Tel: 2136 6182/ 2136 6181
Fax: 2136 6118/ 2136 6068
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