PHILand Ranch Signs Agreement to Co-Develop Part of Hanoi South An Khanh New City
Sep. 30, 2010 (Marketwire) --
FRANKFURT, GERMANY and LOS ANGELES, CA -- (Marketwire) -- 09/30/10 -- PHIGroup, Inc., (OTCBB: PHIE) today announced that its subsidiary PHILand Ranch Ltd., a company engaged in the development of master-planned communities, residential and commercial properties, hospitality and healthcare services in Vietnam and Southeast Asia, (WKN A0RPEA) (FRANKFURT: 1P8) (XETRA: 1P8), has signed an agreement with Hanoi-based Huong Viet International Investment and Trade Joint Stock Company to co-develop the HH3 Project, part of the South An Khanh New City, about 10 kilometers (6.2 miles) from Central Hanoi, Vietnam.
The HH3 Project consists of 2.8 hectares (6.92 acres) along Lang Hoa Lac Highway in An Khanh Village, Hoai Duc District, Hanoi City, which has been approved for 40% mixed use construction, with seven 40-story building blocks to be built, 38 stories of which are allocated for residential purposes. PHILand Ranch will be responsible for engaging a renowned architectural firm to help design the project and jointly contributing capital towards the development and construction.
Total cost of the HH3 Project is estimated at $238.7 million while projected revenues range from $323.5 million to $582.2 million and net profits from $63.5 million to $257.7 million, based on a sale price of $1,000/square meter to $1,800/square meter. PHILand Ranch may own 50% to 70% of the project, based on actual resource contributions such as design work, capital contributed and project management.
According to Cushman Wakefield, the real estate market in Vietnam is showing signs of recovery in line with positive growth of the Vietnamese economy and Hanoi's increasing population and urbanization ratio, which is predicted to be 30% in 2010 and 50% in 2020. Good investment returns are anticipated in all residential segments especially in the premium and executive levels since demand for houses for people with an average income always remains high.
Henry Fahman, Chairman of PHILand Ranch, said, "We are delighted to partner with Huong Viet, a group of real estate experts who possess in-depth knowledge of the local market, marketing savvy and a extensive client network, to develop the HH3 Project to meet the growing demand of the housing market in Hanoi and its surrounding areas. This is the first of our joint development projects with selective local Vietnamese partners as part of our growth strategy."
About PHILand Ranch Ltd.
PHILand Ranch Limited, a United Kingdom corporation, is engaged in the development of master-planned communities, residential and commercial properties, hospitality and healthcare services in Vietnam and the growing economies of Southeast Asia. The company is currently developing the first phase of a multi-billion dollar project at Pointe91 in Bien Rang, Chu Lai, Quang Nam Province, Central Vietnam through its wholly owned Vietnam-based subsidiary PHILand Vietnam Ltd. PHILand Ranch's stock is traded on the Frankfurt Stock Exchange (FRANKFURT: 1P8), (WKN A0RPEA). Website: www.PHILandranch.com.
About PHIGroup, Inc.
PHIGroup (OTCBB: PHIE) provides M&A advisory and consulting services, develops real estate and natural resources and invests in special situations. PHIGroup, which specializes in raising capital and helping take companies public, is developing PHILand Ranch, one of the largest master planned communities in Vietnam. This project includes Pointe91, a luxury resort and premium residential community in Quang Nam province in central Vietnam (www.PHILandranch.com). PHIGroup is also engaged in mining activities through its majority-owned subsidiary PHI Mining Group, Inc. (www.phimining.com). Website: www.phiglobal.com.
Contact:
Daniel St. John
Director and Corporate Strategist
PHILand Ranch Ltd.
Tel: +1-714-843-5453
Email: daniel.stjohn@phiglobal.com
Source: Marketwire (September 30, 2010 - 2:30 AM EDT)
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