SHENYANG, China, Dec. 15, 2006 (PRIME NEWSWIRE) -- Great China International Holdings, Inc. (OTCBB:GCIH) today announced that its subsidiary, Silverstrand International Holdings Company Ltd. ("Silverstrand"), has sold all of its outstanding equity interest in the Galaxy Bay residential project at Chessboard Mountain.
The company said the transaction is valued at more than $90 million, including the buyers' assumption of approximately $75 million in bank loans, plus a cash payment of $1.4 million and an additional fixed-fee contract payment of $14.6 million to be paid in stages upon Silverstrand's completion of certain construction elements of the project in 2007.
Under the terms of the agreement, Great China sold a 50/50 equity interest in the project to Beijing Capital Land Limited and Reco Ziyang Pte Limited. Beijing Capital Land Limited (Hong Kong:2868) is one of the largest integrated property developers in Beijing, and Reco Ziyang Pte Limited, operating as GIC Real Estate Pte Ltd., is one of Asia's largest and leading international real estate investment firms. Great China said it has received government approval for the transaction and that the transfer of equity ownership is expected to close at the end of December 2006.
"Our board and management team determined it would be in the company's best interest to pursue the opportunity of selling Galaxy Bay and concentrate on developing our Xita mixed-use project," said Zhiren (Paul) Deng, chief executive officer. "We believe the prospects for Great China in Shenyang remain strong, and we look to position the company to further develop prime real estate opportunities.
"Great China has been in Shenyang from the start as one of the first companies to develop and manage key real estate properties," Deng said. "The interest we have received from quality investors such as Beijing Capital Land and Reco Ziyang to buy the Galaxy Bay project demonstrates the burgeoning wave of international real estate investors who are coming to Shenyang."
Great China acquired the 104-acre Chessboard Mountain parcel for $56.7 million through a public auction in February 2006. The company said it received a market appraisal value of $88.0 million USD by American Appraisal China Limited in August 2006.
About Great China International Holdings
Founded in 1989, Great China International Holdings' wholly owned subsidiary, Shenyang Maryland International Industry Co., Ltd., is the largest non-state-owned real estate developers in Northeast China. The company's core business is premium residential and commercial development and management. It currently owns and manages the President Building, which was completed in April 2002, with 25 tenants comprised of Fortune 500 companies, including General Electric (China) Co., Ltd., Johnson & Johnson, Kodak and Philip Morris. The company's prior developments included the Maryland Building, Roma Resort Garden, Qiyun New Village, Peacock Garden, University Campus of Shenyang Teacher's University, and Chenglong Garden, mostly located in Shenyang.
Forward-Looking Statements
Statements in this press release may be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, including, but not limited to, completing the transaction to sell the Galaxy Bay project, are based on current expectations, estimates and projections about the company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and probably will, differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and those risks discussed from time to time in the company's filings with the Securities and Exchange Commission.