On March 24, LVGEM(China)Real Estate Investment Company Limited (hereinafter “LVGEM China”) has settled the premiums for land use right of the land parcels 01-08 in advance by two instalments in the total amount of RMB809 million. This marks a remarkable breakthrough in the progress of Baishizhou project. With uncertainties about the salable land plots in Baishizhou project I cleared, the project will proceed to the harvest period.
According to the announcement, in order to speed up the development and construction of the Baishizhou urban renewal project, Shenzhen LVGEM Tiansheng Industrial Co., Ltd, a subsidiary of the Company, in order to expedite the development and construction of the Baishizhou Urban Renewal Project, 深圳市綠景天盛實業有限公司(Shenzhen LVGEM Tiansheng Industry Company Limited*), a subsidiary of the Company, has settled the premiums for land use rights of the land parcels 01-08 in advance by two instalments in the total amount of RMB809 million (the total land premiums paid for the land parcels 01-10 was in the aggregate amount of RMB1,295 million) on 28 September 2021 and 21 March 2022, respectively, pursuant to the land use rights grant contract of Phase I of the Baishizhou Urban Renewal Project. Therefore, the company will collect “four certificates”, which means that Phase I of the Baishizhou urban renewal project has satisfied the key prerequisites for drawdown of the development loans, and the project development and construction will enter the fast lane.
According to the company, the Phase I of Baishizhou Project based on the construction plan is progressing smoothly, the earth pit work has been completed and the main construction stage has begun, and the pre-sale is expected to start in 2023. By then, the Company will achieved a rapid return of massive capital, a significant increase in sales, and the company will embrace a substantial improvement including financial indicators and the “three red lines”, which will be followed by a further improvement in credit ratings.
Located in the core area of Nanshan district, Shenzhen, the Baishizhou project is known as the “Grand Urban Renewal Project in Shenzhen”. With a capacity area of 3.58 million square meters, the project will be developed phase by phase over a period of 8 to 10 years.
The project is surrounded by Shenzhen Bay Super Headquarters Base, Houhai Headquarters Base, Qianhai & Shekou FTA, Futian CBD and other major headquarters bases in Shenzhen, so its commercial value speaks for itself.
The Phase I is commercial housing construction with a 70-year term of use and a GFA of approximately 314,600 square meters, including about 257,000 square meters of residences and apartments, 53,400 square meters of commercial buildings and 4,165 square meters of other facilities.
It is worth mentioning that the Phase I was 100% contracted last year, LVGEM China was confirmed as the operating entity, and the construction was officially commenced in the second half of last year. According to overall planning for the Baishizhou project, the Phase I is expected to see a considerable return of funds, which will promote a benign development of the entire project phase by phase.
Faced with the complex and volatile market conditions under the pandemic, LVGEM China strives to be a gold in the “Iron Age”, steadily advances the Baishizhou project according to the schedule and has made remarkable progress, giving the market great confidence in its future development, and enhancing recognition of the Company in the capital market.
As a benchmark real estate enterprise in the urban renewal of the Greater Bay Area, LVGEM China is visionary and has been systematically implementing its property deployments with the “dual core strategy” of “core cities + core areas”. With 90% of its land reserves of nearly 16 million square meters in core cities of the Greater Bay Area, and projects deployed in core areas of Shenzhen, Hong Kong, Zhuhai and Dongguan, the Group boasts sufficient and solid guarantee for its future development, and LVGEM China’s real estate projects have strong resistance to risk. In addition, leveraging the huge benefits brought by the Greater Bay Area, LVGEM China will continue to unleash the value of its land reserves and seize more development opportunities.
LVGEM China will remain true to its original aspiration, hold fast to Shenzhen, and promote the Baishizhou urban renewal project with its expertise based on 30 years’ commitment to urban renewal and the LVGEM urban renewal model.
Sharpening makes a mighty sword, and cold makes a blooming wintersweet. As a key urban renewal project in Shenzhen, the Baishizhou project is coming to the harvest period. We believe LVGEM China will present a satisfactory result to the society.
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