Minmetals Land and China partner buy $364.25mln plot

265,000 sq.m. land area acquired from auction in Hebei to be developed into a new-type Eco-community.

Minmetals Land Limited (Minmetals Land) announced the acquisition of five parcels of residential land at base bidding price with its PRC partner at a total consideration of approximately RMB318 million (HK$364.25 million) in an auction conducted by the Bureau of Hebei Xianghe Land Resources on 23 July 2010.

The aggregate site area of these lands is approximately 265,000 sq.m. and the maximum gross floor area is approximately 662,000 sq.m, according to a Minmetals Land report.

Since the beginning of 2010, Minmetals Land has worked with its PRC partner, one of the largest residential real estate developers in the PRC, to acquire a piece of land with a maximum site area of up to approximately 5.34 million sq. m. for low-density residential development under the arrangement of “New Rural Development”. So far, five parcels of land with an aggregate site area of 265,000 sq. m., which located in Jiangxintun Town about 3 km from the exit of Jingshen Highway, have been acquired.

Such acquisitions, together with the lands from the last asset injection to be completed, will raise the Company’s land bank to approximately 3.7 million sq.m.

According to the construction plan from Xianghe government, the target area is to be developed into a new-type Eco-community, aiming to accelerate urbanization, improve city image and local living conditions as well as harmonize the development of Xianghe’s economy.

Having the SOE background, Minmetals Land’s investment in Xianghe project under the arrangement of “New Rural Development” shall bring new look into Xianghe’s economy.

Mr. He Jianbo, the Managing Director of Minmetals Land, said, “The acquisition of 265,000 sq.m. of land is a good start of Minmetals Land’s investment in Xianghe under the “New Rural Development”. We should follow the agreed strategy to cooperate with our PRC partner to achieve a win-win situation. We aim not only to develop a scalable and influential project in the Great-Beijing area, but also to build Xianghe into a new town with soaring economy, beautiful environment with modern facilitates.”