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7/2/2007/ GTC to develop fourth Real Estate project in China
Amsterdam, 7 February 2007 Kardan N.V. (Kardan) announces that its real estate subsidiary GTC RE Real Estate N.V (GTC RE) has signed, together with its local partner Lucky Hope, a memorandum of understanding (MOU) with the Shenyang Puhe New City Administration Authority for the development of a phased residential project totaling 920,000 sq.m. of built area on a land plot of 460,000 sq.m. (the Project).The site on which the project is to be developed is currently zoned for agricultural purposes. The MOU states that the Project is subject to a change of zoning into residential use, which the Chinese authorities intend to do in stages over the next two years.
For the first stage, which will take place during the second quarter of 2007, the authorities will rezone 105,000 sq.m. of land on which GTC will develop approximately 210,000 sq.m. of built area.
Each stage of the Project is subject to receipt of the necessary authority approvals.
The consideration for the land is estimated at approximately USD 55 million. The total investment in the project is estimated at approximately USD 250 million.
This will be GTC RE´s fourth real estate project in China and the third in Shenyang. The total development pipeline for GTC China will amount to 2.35 million sq.m. representing an estimated total investment of approximately USD 650 million.
GTC Real Estate N.V. (GTC RE), the real estate division of the Kardan Group, holds a 46.4% stake in GTC SA, one of the largest real estate developers in CEE. GTC RE is active in Europe through GTC SA and GTC investments B.V., and in China through GTC Real Estate China Ltd. GTC RE´S shares are listed on the Tel Aviv Stock Exchange and are included in several of its major indices. Kardan currently holds (directly and indirectly) a 61.9% stake in GTC RE.
