BEIJING, Oct. 25, 2013 /PRNewswire/ -- Xinyuan Real
Estate Co., Ltd. ("Xinyuan" or "the Company") (NYSE: XIN), a
residential real estate developer with a focus on high growth
cities in China, today announced
that it has acquired a residential project in Kunshan, Jiangsu Province. Xinyuan obtained this
project through the acquisition of a local privately-owned real
estate company in Kunshan.
The total site area of the land parcel is approximately 145,776
square meters. The development project will primarily be comprised
of high rise residential apartment units for a total estimated
construction gross floor area of approximately 284,000 square
meters.
The total acquisition price for the project was approximately
RMB844 million (approximately
US$137.3 million). Xinyuan acquired
equity of the local real-estate company valued at approximately
RMB567 million (approximately
US$93 million). Approximately
RMB276 million (approximately
US$45 million) of the entity's
existing debt was paid off upon closing of the transaction. The
Company is in the process of evaluating accounting treatment as
well as future land appreciation tax and corporate income tax
impact associated with this acquisition.
Mr. Yong Zhang, Chairman of
Xinyuan, commented, "We are pleased to have acquired this land
parcel with construction-in-progress in Kunshan, a market in which
we've experienced strong investment returns in the past. Our new
project is a great follow on project to our Kunshan International
City Garden project, where we have sold 96% of the total sellable
GFA as of June 2013. The new Kunshan
development is located in a desirable location, near a recently
opened subway line that allows for direct travel to Shanghai within 60 minutes. We currently
expect pre-sales for this project can commence as early as the 2013
fourth quarter."
"We've announced five new projects in the last two months and
continue to evaluate other compelling development opportunities. As
demand for housing in China
remains steady, we intend to expand our development portfolio to
maximize our growth and profits for our shareholders."
About Xinyuan Real Estate Co., Ltd.
Xinyuan Real Estate Co., Ltd. ("Xinyuan") (NYSE: XIN) is a
developer of large scale, high quality residential real estate
projects aimed at providing middle-income consumers with a
comfortable and convenient community lifestyle. In China, Xinyuan primarily focuses its
development projects in Tier II cities, Zhengzhou, Ji'nan, Suzhou, Kunshan, Xuzhou,
Chengdu and Hefei. The Company's U.S. development arm, XIN
Development Group International, Inc., is a pioneer amongst Chinese
real estate residential developers, entering the US market in 2012.
Xinyuan is the first real estate developer from China to be listed on the New York Stock
Exchange. For more information, please visit
http://en.xyre.com/ir.html.
Safe Harbor Statement
This press release contains forward-looking statements. These
statements are made under the ''safe harbor'' provisions of the
U.S. Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "confident" and similar statements.
Statements that are not historical facts, including statements
concerning our beliefs, forecasts, estimates and expectations, are
forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties that could cause actual results to
differ materially from those projected or anticipated, including,
but not limited to, the risk that: our financing costs are subject
to changes in interest rates; our results of operations may
fluctuate from period to period; the recognition of our real estate
revenue and costs relies on our estimation of total project sales
value and costs; we may be unable to acquire desired development
sales at commercially reasonable costs; increases in the price of
raw materials may increase our cost of sales and reduce our
earnings; we are heavily dependent on the performance of the
residential property market in China, which is at a relatively early
development stage; PRC economic, political and social conditions as
well as government policies can affect our business; the market
price of our ADSs may be volatile, and other risks outlined in our
public filings with the Securities and Exchange Commission,
including our annual report on Form 20-F for the year ended
December 31, 2012. Except as required
by law, we undertake no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise, after the date on which the statements
are made or to reflect the occurrence of unanticipated events.
For more information, please contact:
Xinyuan Real Estate Co., Ltd.
Ms. Helen Zhang
Financial Controller
Tel: +86 (10) 8588-9255
Email: yuan.z@xyre.com
ICR, LLC
William Zima
In U.S.: +1 646-308-1472
In China: +86 (10) 6583-7511
Email: william.zima@icrinc.com
SOURCE Xinyuan Real Estate Co., Ltd.