Amsterdam, 23 December 2008. International investment company Kardan N.V. (Kardan) announces that its real estate subsidiary, GTC Real Estate China Ltd. (GTC China), has won an auction to acquire a land plot of approximately 63,300 sqm, with construction rights of approximately 292,000 sqm,  in the city of Dalian in China. The total land price amounts to approximately EUR 90 million. The total development costs, including the land price, are expected to amount to approximately EUR 315 million. The new project completely fits GTC China’s strategy to invest in the tier 2 and 3 cities, where GDP growth is higher than the average growth in China.

In Dalian, the sixth city in China in which Kardan will deploy real estate activities, GTC China will develop a so called mixed use project. Approximately 112,000 sqm of serviced apartments and a shopping centre of 100,000 sqm, of which 85,000 sqm is above ground and 15,000 sqm is below ground will be developed. In addition, about 80,000 sqm of parking space will be realized.

The project is anticipated to be developed in two phases. The first phase encompasses the serviced apartments, 55,000 sqm of above ground retail, the underground retail and parking spaces. This phase will be completed in approximately four years time from now, construction will start in December 2010 at the latest. The second phase, being 30,000 sqm of above ground retail will be developed after 2012.

Due to its location, the excellent infrastructure and the expected market for serviced apartments and shopping centres this project represents a very promising opportunity.

The land price of approximately EUR 90 million is payable in three installments. The first installment of approximately EUR 19 million has been deposited with the seller. The next installment of approximately EUR 26 million is payable in December 2009. The last installment is payable when the actual construction starts.

The funding of the project will initially be done by GTC China. Preliminary discussions have started with potential partners to join GTC China in the project and with Chinese local banks about the debt funding.

Dalian is a coastal city, located east from Beijing in the province of Liaoning. Dalian is the second largest and most important city of Liaoning after the capital Shenyang. In Shenyang, GTC China is already developing three projects. Dalian is known for its advanced town planning. The total number of inhabitants is more than 6 million. The project site is located within the old port of Dalian, which has been rezoned as a commercial and tourist destination.

Including this project, GTC China develops a total of 2.9 million sqm of residential and retail/commercial property in six Chinese cities, together with its local partners. 

GTC China is a wholly owned subsidiary of GTC Real Estate Holding B.V. (GTC RE), which shares are 100% held by Kardan N.V. GTC RE holds a 46.2% stake in Globe Trade Centre S.A.(GTC SA), one of the largest real estate developers in Central and Eastern Europe. GTC RE is active in Europe through GTC SA and GTC Investments B.V., in China through its 100% subsidiary GTC China and as recently announced in India.

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