Minmetals Land acquires 3 real estate developments from China Minmetals

Projects totaling GFA 1.25mln sq. m. HK$2.36 per consideration share has increased the company’s land bank to over GFA 4mln sq. m.

Minmetals Land Limited is pleased to announce the completion of acquisition of the interests in three real estate development projects (the “Acquisition”) from China Minmetals Corporation (“China Minmetals”) dated 20 December 2010. The consideration has been satisfied by the issuance of approximately 600 million new shares (“Consideration Shares”) by the Company to June Glory International Ltd. (“June Glory”, a wholly-owned subsidiary of China Minmetals H.K. (Holdings) Ltd. and an immediate controlling shareholder of the Company) at HK$2.36 per Consideration Share. The shareholding of China Minmetals H.K. (Holdings) Ltd. in the Company has thus risen to 61.97% after completion, according to a Minmetals Land report.

Mr. He Jianbo, the Managing Director of Minmetals Land, said, “The Company’s land bank has increased to over GFA 4 million sq.m. after the Acquisition. These projects have achieved great results since launching pre-sales, which will bring in immediate profits and cashflow into the Company.

Since 2008, China Minmetals has injected three lots of quality assets valued over HK$3 billion into the Company. The latest asset injection with total GFA of approximately 1.25 million sq.m. represents only one quarter of the residential land bank of the parent company. Given the parent company’s rich land bank avails for further injections, Minmetals Land shall continue to grow in the future. Being one of the 16 Stated-owned enterprises approved for carrying out real estate development business as the core business, China Minmetals has, by consolidating its real estate assets and resources, affirmed the position of Minmetals Land as its sole listed real estate flagship. We shall strive to enhance the value of our brand, and hence, increase our market share and influence within the PRC property market in order to deliver promising returns to our shareholders.”