China-based property developer Euro Asia Premier Real Estate plans to develop a residential project on a Cloud Lake site in Shandong Province.
Located on a 103,437 sq m land parcel, the development will comprise six apartment buildings, with a total gross floor area (GFA) of 80,000 sq m and an additional 20,000 sq m allocated for 500 parking spaces. The total construction cost for the project is estimated at about RMB144 million, which will be financed internally without debt.
Euro Asia also recently inked a preliminary deal with a third party purchaser for 33 percent of the whole development (or two of the six buildings) for RMB95 million. The remaining four buildings and the parking spaces are expected to fetch a retail price of about RMB205 million and RMB80,000 respectively, totalling RMB40 million.
“This proposed project fits very well with our strategy to develop upscale housing at prime locations. The Cloud Lake area is very scenic and being able to provide lake side property only increases the demand,” said Patrick Chan, Chairman of Euro Asia.
“Although slightly different in nature from the signature deals announced recently, as we are taking on the entire development ourselves, by signing a pre-sales agreement, we still manage to reduce our risk exposure. This is a very attractive project for our company and the returns from this will allow us further to accelerate shareholder value creation.”
Construction for the project will likely start by the end of March and is slated for completion by end-2012. The official sale will commence from 31 May onwards and Euro Asia hopes to complete the sale within 12 months.