China Housing Announces Receipt of New Bank Loan to Fund JunJing II Phase 2 Project
BY PR Newswire
— 09:11 AM ET 08/31/2009
XI'AN, China, Aug. 31 /PRNewswire-Asia-FirstCall/ -- China Housing & Land Development, Inc. (CHLN
), today announced that it has been granted a 120 million RMB (USD$17.5 million) bank loan from China Construction Bank to support the development of its JunJing II Phase 2 project. This loan is a new drawdown from the Company's existing RMB 1 billion (USD$147 million) credit line.
The Company established a RMB 1 billion (USD$147 million) credit line with China Construction Bank in July 2008. Including the loan drawdown announced today, the Company will have approximately USD$30.5 million in bank loans from China Construction Bank and total bank loans outstanding of approximately USD$42.0 million. Commencement of the JunJing II Phase 2 project began in the second quarter of 2009 and is expected to be completed by the second quarter of 2011. Upon completion, Phase 2 of JunJing II is expected to have a total of 1,015 units developed for a total GFA of approximately 113,000 sq. meters.
Mr. Pingji Lu, China Housing's Chairman, said, "We are pleased to be moving forward with the continued development of our JunJing II Phase 2 project. We believe that receiving funding from our bank partner during a time when credit policy is tightening is a reflection of the quality and stability of our operations and the strength of our balance sheet. As we generate future cash from unit sales of the JunJing II Phase 2 project, we will apply the proceeds to pay down our credit line and keep our debt/equity ratio at a healthy level."
Mr. Lu continued, "The build out of this project is well-timed as we are seeing increased home purchasing demand in the greater Xi'an region, as demonstrated by the recent pick up in GFA sales and sales per sq. meter growth. We are uniquely positioned in the Xi'an market and this project is a higher end project that can result in higher selling prices compared with some of our other completed real estate projects. We believe the JunJing project will further reinforce China Housing as a leading developer in Xi'an and the greater Shaanxi region, and we look forward to realizing the full potential of this new development."
About China Housing & Land Development, Inc. (CHLN
Based in Xi'an, the capital city of China's Shaanxi province, China Housing & Land Development, Inc. (CHLN
), is a leading developer of residential and commercial properties in northwest China. China Housing has been engaged in land acquisition, development, and management, including the sales of residential and commercial real estate properties through its wholly-owned subsidiary in China, since 1992.
China Housing & Land Development (CHLN) is the first and only Chinese real estate development company traded on NASDAQ. The Company's news releases, project information, photographs, and more are available on the internet at http://www.chldinc.com