Ying Li secures Chongqing site for $177.4m

It will be developed into an integrated development project with high-end residential units and top-end retailers

YING Li International Real Estate has secured a prime integrated development site in Yuzhong District, Chongqing, China for 851.6 million yuan (S$177.4 million) in a government land auction.

The 28,226 square metre site will be developed into an integrated development project which will include high-end residential units and also house top-end retailers. It will involve potential collaboration with a high-end hotel or service residence operator, the Chongqing property developer said yesterday.

The project is strategically located at the prime city centre of Chongqing, within Yuzhong District, with a planned total gross floor area of over 300,000 sq m and a plot ratio of about 10.64.

Ying Li’s chief executive Fang Ming said that this acquisition will enhance the group’s presence in Chongqing and extend its footprint in Yuzhong District.

The project is expected to be fully completed by June 30, 2013, and will allow Yingli to capitalise on the rapid growth trend in the prime central business district area of Chongqing. Ying Li expects to commence presale of the residential units as early as 2010.

‘Following the successful acquisition of this prime land parcel, we have brought our total landbank in the prime CBD areas of Chongqing to over one million square metres,’ Mr Fang added. ‘This enlarged land bank will enhance the group’s scalability and extend its leadership position in Chongqing.’

Ying Li recently placed out 107.14 million new shares at $0.28 apiece to raise about $30 million. The proceeds will be used to develop the International Financial Centre, to repay bank loans, and for general working capital purposes.

For the second quarter ended June 30, its net profit tumbled to 278,000 yuan from 491.39 million yuan a year ago as higher costs outpaced its sales growth. Revenue more than doubled to 34.44 million yuan from 16.23 million yuan a year ago.

The group recorded 58.36 million yuan of trade and other receivables as at June 30, a 141 per cent surge from 24.15 million yuan as at end-2008, mainly due to the advance payment for construction materials required for its International Financial Centre development.

Source : Business Times – 26 Sep 2009