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Feb. 23, 2012 /PRNewswire-Asia-FirstCall/ -- China HGS Real Estate Inc. (NASDAQ: HGSH) ("China HGS" or "the Company"), one of the largest residential and commercial property developers in
Shaanxi Province, signed an agreement (the "Agreement") on
February 3, 2012 to sell multiple units in the Company's Yangzhou Pearl Garden project (currently under development and located in Yang County,
Shaanxi Province) to Pingdu National Forest Farm (the "Buyer").
According to the Agreement, the Buyer will purchase from the Company 68 residential apartments in the project for an estimated total contract value of
RMB 20 million (approximately
$3.2 million). The unit prices will adhere to Yang County's pricing policy for low and middle income residential housing, with units fewer than 1,076 square feet priced from
RMB 158 to RMB 200 (approximately
$25.08 to $31.75) per square foot and units greater than 1,076 square feet priced from
RMB 262 to RMB 291 (approximately
$41.59 to $46.20) per square foot.
Under the Agreement, China HGS is required to deliver one phase of residential apartments in Towers 1, 16, and 17 to the Buyer by
June 30, 2012; a second phase of residential apartments in Towers 31 and 45 by
December 31, 2012; a third phase of residential apartments in Tower 50 by
December 31, 2014; and a fourth phase of residential apartments in Tower 30 immediately upon closing. The Buyer is required to make an initial payment of
RMB 4.1 million (approximately
$0.6 million) as a deposit for the units, and if the remaining balance is paid within 30 days from the initial payment date, the Buyer will be entitled to a 1% discount on the total purchase price of the units.
"Large-scale bulk-purchase agreements continue to be a beneficial component of our sales strategy, and we are pleased to have further secured our future revenue stream for the Yangzhou Pearl Garden project," stated Mr.
Xiaojun Zhu, Chairman and Chief Executive Officer of China HGS Real Estate, Inc. "With the Spring Festival holiday now behind us, we are entering a period that has historically seen robust sales. This improved selling environment, in combination with several phases of our projects nearing completion, positions us to generate increased sales in the coming quarters."
About China HGS Real Estate Inc.
China HGS Real Estate Inc., through its wholly owned subsidiary, Shaanxi Guangsha Investment and Development Group Co., Ltd., has specialized since 1995 in real estate development in
China's third-tier and fourth-tier cities. The Company's real estate properties include multi-layer, sub-high-rise, and high-rise apartment buildings. The Company possesses the national Grade-I real estate qualification and was ranked as the No. 1 property developer in Hanzhong,
Shaanxi Province in terms of market share in 2007, 2008, 2009, and 2010 successively.
This press release contains certain statements that may include 'forward-looking statements'. All statements other than statements of historical fact included herein are 'forward-looking statements'. These forward looking statements are often identified by the use of forward-looking terminology such as 'believes,' 'expects' or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website
http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
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Investor Relations Contact: Jon CunninghamRedChip Companies, Inc.1-800-733-2447, Ext. 107
SOURCE China HGS Real Estate Inc.