China Housing & Land Development Announces Successful Pre-Sales Results for Puhua Phase One Project

Edited: Jennifer Brenner
Source: China Housing & Land Development

China Housing & Land Development, Inc., ("China Housing") has successfully completed its first round of presales for the company's Puhua Phase One project.

China Housing officially began accepting pre-sales contracts for units in the Puhua Phase One project on October 24th, and during that weekend, the Company sold 133 out of 192 residential units made available in the first round for a total gross floor area ("GFA") sold of approximately 16,388 sq. meters. The contract amount of the units sold totaled RMB71.9 million. The units sold included residential space within one high-rise building, one mid- rise building and three garden houses.

Pre-sales are customary in China and enable developers to have visibility into sell-through rates, while providing access to capital to complete projects which can augment overall internal rates of return. Pre-sales contract sales for Puhua Phase One are reported under the percentage of completion accounting method for revenue recognition and may not be fully recognized in the 2009 fourth quarter.

Construction began on Puhua Phase One in June 2009 and is expected to be completed by the third quarter of 2011. The first phase is expected to total 117,160 sq. meters of GFA. The Puhua project is a 79 acre development within the Company's 487 acre Baqiao New Development Zone. Puhua Phase One is the first, and smallest based on GFA, of four projects planned by China Housing within the 79 acre development zone.

Mr. Pingji Lu, Chairman of China Housing commented, "We are off to a solid start at our Puhua development and are pleased that initial presales results exceeded our expectations. The Puhua project is extremely attractive to prospective homeowners due to the innovative design and quality construction of its housing units, easily commutable location, and serene, natural environment located within Xi'an's city limits. We are making excellent progress thus far in the first phase of this project and are pleased to see continued stability in Xi'an's residential housing market, which can help enhance demand for Puhua unit sales in the coming years. Our successful pre- sales results thus far for Puhua Phase One strengthen our confidence in this project and for our greater Baqiao development project opportunities."

Based in Xi'an, the capital city of China's Shaanxi province, China Housing & Land Development, Inc., 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.