Tangshan Lerthai City of LT Commercial Real Estate, Commencing Presale of Residential Apartments in Fourth Quarter of 2014

Publication Date:2015-01-21 Clicks: Font size:SmallMediumBig

(Hong Kong, 25 August 2014) LT Commercial Real Estate Limited ("LT Commercial" or the "Company") (Stock Code: 00112HK) is pleased to announce that presale of the residential apartments of "Tangshan Lerthai City", the flagship project of the Company's first fine city complex, has been scheduled to commence by the fourth quarter of this year. Since 2013, LT Commercial has been stepping up efforts in expanding property project investments. The Company's asset quality is increasingly sound, while the presale will help improve the Company's financial performance.
The total gross floor area of Tangshan Lerthai City is approximately 157,000 square meters while the total contracted construction area reached approximately 680,000 square meters. This construction project includes shopping arcade, office buildings, hotels, residential apartments and retail properties, in which the gross floor area of residential apartments is approximately 160,000 square meters. The construction of residential apartments is expected to be completed in 2016, and the presale is planned to be commenced by the end of this year. On the other hand, the gross floor area of the shopping arcade is approximately 180,000 square meters, which are wholly self-owned, and is expected to be opened on or before the first half of 2016 to bring stable rental income and cash flows to the Company.
Mr. Yang Longfei, Chairman and Chief Executive Officer of LT Commercial said, "Although China continues to implement austerity measures, China's sustainable economic growth coupled with urbanization trends and high household savings rate, as well as continuous increase in demand of end-users, the prospect of China property industry is still long-lasting. The Company is now actively looking for opportunities of high-quality land acquisition for future development in the China property market. Meanwhile, in order to make a more diversified investment and hedge for domestic business, we will continue to seek suitable opportunities for exploring overseas markets, including the United States and Canada, hence to provide a relatively stable and low-risk investments and capital gains opportunities for the Company."
Mr. Dixon Chan, Executive Director and Deputy Chief Executive Officer of LT Commercial said, "LT Commercial has been committed to optimize its financial performance and to consolidate its financial strength through the financing platforms of international capital markets. Positive responses were received from the market regarding our recent issuance of bonds up to HK$400 million, reflecting our investors' recognition of the Company's development prospect. Along with our plan of commencing presale of residential apartments of Tangshan Lerthai City in the fourth quarter of the year, the management believes the financial strength of the Company will be improved. We will continue to accelerate the pace of development of new projects, aiming to strive for better results and performance for all shareholders."
For the interim results of the six months ended 30 June 2014, assets of LT Commercial increased substantially, in that time deposit and bank balance increased significantly by 78% to HK$880 million compared to the corresponding period in 2013. During the current interim period, the Company's loss attributable to shareholders was HK$33.60 million and loss per share was HK9.91 cents, which was due to the significant increase in administrative expenses arising from expansion in business activities to support the Company's operations and development in Hong Kong, China and the United States.