17 Jan 2012 10:31
Pacific Alliance China Land Limited
Pacific Alliance China Land Limited (AIM: PACL) announces that as of 31st December 2011, the total net assets value (NAV) was USD 294.8 million or USD 2.1073 per share which represented a 21 per cent increase on the year end 2010, and a 6.7 per cent increase on the previous quarter in 2011. The majority of this increase was predominantly attributable to two Projects as detailed below.
1) Project Malls - after the sale of the shopping center platform in August 2011 PACL continues to own an effective 30% share of Szitic Commercial Property Management which holds a 14% equity interest in the Shanghai Villa Land (located nearby the Shanghai Disneyland theme park project) and a 10% equity interest in the Wal-mart China JV.
Since construction commenced in Q2 2011 at the nearby Disneyland theme park project in the Pudong New Area in Shanghai, there have been marked improvements in the infrastructure and overall attractiveness of the area surrounding the Shanghai Villa Land. The Shanghai Villa Land increased 58% from RMB 5,728,000,000 at Q2 to RMB 9,040,000,000 at Q4 2011 primarily attributable to actual market transactions of comparable land in the surrounding area as indicated by Colliers in its appraisal.
2) Project Diplomat - The current occupancy rate of the property is 95.3% and this, together with improved rental rates over 2010 has led to a 12% increase in the property's Net Operating Income (NOI) for 2011. The improved NOI, combined with a slightly lower cap rate due to the strong market for high quality serviced apartment buildings in Beijing as indicated by Savills in its appraisal, has resulted in a 13.7% increase in the property's value from RMB 1,500,000,000 at Q3 2011 to RMB 1,697,000,000 at Q4 2011.
17th January 2012