(19 June 2009 – Hong Kong) – China Aoyuan Property Group Limited ("China Aoyuan" or the "Group", SEHK Stock Code: 3883), a leading integrated property developer in Guangdong Province in China, announced that it has entered into an agreement with an independent third party to acquire a project company in Zhongshan City, Guangdong Province. The major asset of the project company is a parcel of land with a total GFA of approximately 351,690.5 sq. m. at Guangfeng Community, Westin District of Zhongshan City ("the land"), which the Group intends to build mainly low-density residential complex with saleable area reaching approximately 350,000 sq. m.
The total consideration of the acquisition is RMB640,000,000 of which RMB 590,000,000 (inclusive of interest expense) will be funded by a 3-year bank loan, which will be repaid by 3 installments. The first installment is due in 15 months after the completion date, which could be funded by the project"s pre-sale income generated next year. Therefore, the Group would only invest RMB50,000,000 through internal resources to complete the acquisition, and very satisfactory internal rate of return is expected.
Mr. Guo Zi Wen, Chairman & CEO of China Aoyuan, said, "This acquisition is another strategic pursuit of the Group after the acquisition of commercial site in Tianhe District, Guangzhou acquired by the Group last month. After the acquisition is completed, the Group will build a low-density residential complex by utilizing its ‘People First" construction concept and the well-known "Aoyuan" brand name, to further consolidate its presence in Guangdong. "
"Zhongshan City is one of major coastal cities open to investment and enjoys geographical advantages with Guangzhou, Hong Kong and Macau as its neighbors. The land has tremendous development potential and for the Group to have a project at a prime location in the city is conducive to its long-term development. We believe the acquisition is in the best interest of the Group and will become a major profit source of China Aoyuan in the near future." Mr. Guo concluded.

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