Competition Among Leading Chinese Real Estate Companies Intensifies

BEIJING -

- Enterprises Push Forward Plans to Go Public

According to the “Sales Rankings of Chinese Real Estate Companies for Q3 2009″ report released on October 9 by CRIC (China) Information Technology Co., Ltd., in cooperation with China Real Estate Appraisal and Shanghai E-House Real Estate R&D Institute, Evergrande Real Estate Group, which has recently passed the listing hearing with Hong Kong Exchanges and Clearing and is planning to go public in Hong Kong, recorded 2.303 million square meters of floor space sold for the third quarter of this year, topping the list. With 51 million square meters of land acquired at low prices, it has become the largest landholder in the Chinese property market. Sina Leju was the first media source to announce the release of this report, part of which is as follows:

Evergrande doubles sales, is first in floor space sold for Q3 2009

Vanke recorded sales of RMB 42.646 billion for the first three quarters of this year, topping the list, followed by Poly Real Estate Group at RMB 31.035 billion. Also, China Overseas Property, Greentown Group, Evergrande Real Estate Group and Greenland Group all saw sales exceeding RMB 20 billion. Ten firms posted sales exceeding RMB ten billion.

Evergrande Real Estate, which has passed the listing hearing and is planning to go public in Hong Kong, led in terms of sales and sales volume for Q3 2009 and sales volume and land reserves for the first three quarters. Evergrande reported sales of RMB 12.33 billion (exceeding traditional enterprises by RMB 300 million) in the quarter, and sold floor space of 2.303 million square meters. Large land reserves and an operating model based on quick turnaround of projects have helped Evergrande Real Estate advance. Sales increased 103.09 percent between the first half and 3Q of this year, while the amount of floor space changing hands increased 106.75 percent, a doubling in these two areas, placing Evergrande at the top of the two lists.

Mainland China real estate developers seek IPOs on HKEx

Sixteen of the top 20 mainland Chinese real estate developers in terms of sales have reported sales exceeding RMB ten billion for the first three quarters of 2009, with six of them posting sales exceeding RMB 20 billion for the nine months. Though strong sales have ensured healthy cash inflows, many among them are eager to seek financing by listing on stock markets. Currently, privately-held Chinese developers including Evergrande Real Estate Group, Longfor Properties, Star River Property and CITIC Real Estate are planning initial public offerings (IPOs) on the Hong Kong Stock Exchange (HKEx).

Evergrande’s land reserves of 51 million square meters, the most among all major Chinese real estate developers, have drawn criticism in the past. However, those reserves are now an advantage, and the company’s competitors are buying expensive land just to maintain sufficient reserves.

One report indicates that the amount of money to be raised by Evergrande in the Hong Kong market is expected to be in the range of US $1 billion to US $1.5 billion. If successfully carried out, the IPO will be one of Hong Kong’s largest this year in the real estate sector.

For more information, please contact: Kevin Fax: +86-10-5895-1005 Email: Kevinmts@sina.com

Source: Sina Leju

Kevin of Sina, +86-10-5895-1005, or Kevinmts at sina.com