Zhong An Proposed Spin-off of China New City, Expected to Create
Zhong An Proposed Spin-off of China New City, Expected to Create More Value for Shareholders
Hong Kong, Oct 2, 2013 - (ACN Newswire) - Zhong An Real Estate Limited ("Zhong An" or the "Group"; stock code: 672.HK), one of the leading PRC property developers in the Yangtze River Delta region, is pleased to announce the Proposed Spin-off and separate listing of China New City Commercial Development Limited ("China New City") on the Main Board of the Stock Exchange. On 30 September 2013, China New City submitted a listing application form to the Stock Exchange for an application for the listing of, and permission to deal in, the China New City Shares on the Main Board of the Stock Exchange.
Abundant Experience in Commercial Properties Development and Operations Zhong An started its business from commercial properties development. The Group has developed and held commercial properties as long-term investments since 1997, including shopping spaces, office buildings and service apartments. In virtue of over ten years' development in commercial projects, Zhong An has accumulated abundant experience in commercial properties development and operations, and has an experienced and cohesive management team.
Currently Zhong An has a total of 6 hotels and 5 investment properties under operation, construction or planning. For investment properties, the Group's Zhong An Highlong Plaza, located in Xiaoshan District of Hangzhou, is a key commercial project in the Eleventh Five-Year Plan of Hangzhou, Zhejiang Province. After over three years' development, the brand new philosophy of one-stop shopping of Zhong An Highlong Plaza has won the recognition and popularity of people in Xiaoshan, and it has become the flagship complex of the new district in Xiaoshan. At present, the Group has 4 major investment properties under construction or planning, which include high-end shopping centers and grade A office buildings. Zhong An Times Square in Yuyao, is expected to commence operation by the end of 2015. Zhong An Hangzhou International Business Center ("Hangzhou IOC") is located at Qianjiang Century Town, the future CBD in the southern part of China's most-potential Yangtze River Delta Economic Region, comprising high-end hotel, shopping mall, office buildings, and service apartments. It's drawing much market attention due to advanced design, environment-friendly architectural concept and immense prospects. Fairmont Hotel will enter into Hangzhou IOC.
With regard to hotel business, the Group's hotel, Holiday Inn Xiaoshan Hangzhou, was opened in 2007 and is in smooth operation with steady occupancy rate. In addition, the Group has 5 high-end hotels under construction or planning stage. Doubletree by Hilton in Yuyao, Ningbo is expected to commence operation as scheduled in 2015; and the hotel project located in Qiandao Lake, Hangzhou is expected to commence operation by the end of 2014.
Focusing on Commercial Complex Development in New Cities of Yangtze River Delta region
In virtue of Group's sixteen years' experience in commercial complex development, China New City will effectively expand business in commercial complex to third and fourth-tier cities and their suburb areas in Yangtze River Delta region.
It is believed that China New City will benefit from future development of such areas through developing projects in third and fourth-tier cities and their suburb areas. China New City's focus in the development of future urban cores will bring long-term and favorable support to the Group's performance in the new-type urbanization.
Mr. SHI Kancheng, the Chairman of Zhong An commented, "the Spin-off will create a more defined business focus for both China New City and the Remaining Zhong An Group, further enhance the branding and provide investors and the public with greater investment focus for each group, which will provide separate access to capital markets and increase financing flexibility, thus to create more value for shareholders. Looking forward, Zhong An will continue to expand the Group's operation scale to consolidate the Group's leading position in Yangtze River Delta and boost the Group's expansion into other markets."
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