Kirin International Holding, Inc. Signs Strategic Alliance with $5 Billion Zhongtian Construction Group
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Today : Monday 25 July 2011
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Kirin International Holding, Inc. (OTC BB: KIRI, the "Company"), the largest private developer of residential mixed-use properties in Xingtai, North China's oldest city, announced that today it signed a strategic alliance agreement with Zhongtian Construction Group Co., Ltd. ("Zhongtian"), one of China's top ten private builders with more than $5 billion in revenues. "Kirin's growth plans call for projects across China, and Zhongtian can help us build them anywhere in the country," said Kirin CEO Mr. Longlin Hu. "We look forward to developing projects in and outside Hebei Province with Zhongtian as our preferred construction contractor," commented Mr.Hu.
In China Zhongtian Construction Group Co., Ltd. ranks among the top 500 enterprises, the top 50 private enterprises, and the top ten private enterprises in the construction industry. When Zhongtian obtained the China Quality Management Award it became only the second construction enterprise in the country to receive such honors.
Zhongtian focuses on homebuilding, real estate development, and road and bridge construction. It holds one super-grade qualification for general contracting of residential construction projects and seven first-grade qualifications for undertaking projects in electrical and mechanical installations, road construction, and architectural decoration.
Kirin's projects are currently concentrated in the southern area of Hebei Province of the PRC, primarily in the city of Xingtai, approximately three hours south of Beijing, and nearby regions. Kirin's real estate developments target first-time, owner-occupied homebuyers consisting primarily of young urban professional families and middle class clients. According to Kirin, approximately half of Kirin's homebuyers pay cash for their housing units and another quarter of their purchasers make 50% down payments.
Kirin's estimated average selling prices for the Kirin Bay and No. 79 Courtyard projects range from USD$70 to USD$86 per SF, compared to prices in Beijing and Shanghai that have reached as high as USD$350 to USD$500 per SF. The Company's home market of Xingtai demonstrates the real estate development potential of China's Third Tier cities: continued urban migration, a balanced and growing economy, the need for trade up housing from an emerging middle class eager and willing to improve itself economically, and much greater relative affordability than the PRC's First Tier and megacities.
In addition to its projects in Xingtai, Kirin China has started gaining knowledge on property conditions and related land and development approval procedures in Shijiazhuang of Hebei Province and in Dezhou and Tai'an of Shandong Province, and the suburban area of Tianjin, all adjacent to the recently-opened Beijing-to-Shanghai high-speed rail corridor.
