BEIJING and NEW YORK, April 12, 2011 /PRNewswire/ -- Kirin International Holding, Inc. (OTC BB: KIRI, the "Company" or "Kirin") celebrated the grand opening of its new Kirin Bay residential housing project on Saturday, April 9 in Xingtai, obtaining over $14 million in signed sales contracts from 189 homebuyers through Sunday. "We are off to a good start with the Kirin Bay community, after several years of redevelopment work to get the site ready for the city of Xingtai," said Kirin Chairman and Founder Mr. Jianfeng Guo. "We sold over 70% of the entire first phase in the two-day weekend," added Chairman Guo. Kirin is the largest private developer of residential mixed-use properties in Xingtai, North China's oldest city, and debuted on the U.S. public markets last month.
Kirin Bay is a three-phase, master-planned community built on a land area of approximately 660,000 square meters. Positioned as a mid-market residential development, Kirin Bay will also feature kindergartens, a primary school, hotel, office buildings and apartments. It is expected to provide Xingtai with over 5,500 new homes in total. The first phase calls for 250 residential units consisting of one- and two-bedroom apartment homes ranging from 50 to 130 square meters each at sales prices of approximately $650 per square meter.
Construction for Kirin Bay is expected to start in the second quarter of 2011 and completion of all phases of development is planned for April of 2015. The first phase residences sold on Saturday and Sunday are expected to be delivered by the end of 2013 while the final phase residences are expected to be delivered in May 2015. Kirin estimates the total development cost of Kirin Bay at $147 million, with an estimated ROI of 140%.
Kirin Bay is situated in a city-center location redeveloped by Kirin, where Xingtai residents formerly lived in primarily two-story dwellings, which were acquired over time by the Company and the new homes are now the subject of government grants. There will be eight 26-story high-rise buildings and six single-floor villas in the new Kirin Bay community.
Kirin's projects are currently concentrated in the southern area of Hebei Province of the PRC, primarily in the city of Xingtai, approximately three hours south of Beijing, and nearby regions. Kirin's real estate developments target first-time, owner-occupied homebuyers consisting primarily of young urban professional families and middle class clients. According to Kirin, approximately half of Kirin's homebuyers pay cash for their housing units and another quarter of their purchasers make 50% down payments.
The Company's home market of Xingtai demonstrates the real estate development potential of China's Third Tier cities: continued urban migration, a balanced and growing economy, the need for trade up housing from an emerging middle class eager and willing to improve itself economically, and much greater relative affordability than the PRC's First Tier and megacities.
In addition to its projects in Xingtai, Kirin has started gaining knowledge on property conditions and related land and development approval procedures in Shijiazhuang of Hebei Province and in Dezhou and Tai'an of Shandong Province, and the suburban area of Tianjin, all adjacent to the Beijing-to-Shanghai high-speed rail corridor.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon the current plans, estimates and projections of Kirin's management and are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements.
Such statements include, among others, those concerning market and industry segment growth and demand for Kirin's communities; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in China, as well as all assumptions, expectations, predictions, intentions or beliefs about future events.
Therefore, you should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The following factors, among others, could cause the Company's actual results to differ materially from those anticipated in such forward-looking statements: business conditions in China, general economic conditions; geopolitical events and regulatory changes, availability of capital, the Company's ability to maintain its competitive position and dependence on key management and other factors discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
SOURCE Kirin International Holding, Inc.