USD22m Investment in Project in Third Tier City

09-09-2010 08:01

9 September 2010 Pacific Alliance China Land Limited ('PACL' or the 'Company') USD22m Investment in Project in Third Tier City Pacific Alliance China Land Limited ('PACL' or 'the Company'), the closed-end investment company admitted to trading on AIM and focused on investing in a portfolio of investments in existing properties, new developments, distressed projects and real estate companies in Greater China, today announces that it has invested US$22million ('the Investment') through a domestic Chinese subsidiary for a 15% equity interest in a primarily residential development project with Shanghai Aijia Investment Group ("the Developer"). The project, located in the third tier city of Jiangyin in Jiangsu Province, is a vacant site with a total buildable GFA of 367,650 sq m. The investment was funded entirely from free cash without leverage and is expected to generate attractive returns with a minimum preferred cash multiple of 1.4x over the proposed three year term. The Shanghai based Developer is a regional leader in the Yangtze River Delta and has to date developed over two million sq m of property. An affiliate company of the Developer is working towards a domestic listing and PACL may have the opportunity to swap its equity interest in the project for shares in the prospective public company, possibly to realize a higher valuation and better liquidity. "PACL's investment in the Jiangyin project is a defensive play with attractive upside potential in the context of current market dynamics where investment fundamentals in second and third tier cities remain sound. This investment also allows PACL to develop a strategic partnership with a well regarded regional developer with the potential for further investment opportunities in the residential sector," commented Patrick Boot, Managing Director of PACL's investment manager, Pacific Alliance Real Estate Limited. Enquiries: For more information, please contact: MANAGER: LEGAL COUNSEL: Patrick Boot, Managing Director Jon Lewis, General Counsel Pacific Alliance Real Estate Limited c/o Pacific Alliance Group 16/F, St. John's Building 16/F St. John's Building 33 Garden Road 33 Garden Road Central, Central, Hong Kong  Hong Kong T: (86) 21 6288 3788 T: (852) 2918 0088 F: (86) 21 6288 9272 F: (852) 2918 0881 pboot@pacific-alliance.com.cn jlewis@pacific-alliance.com BROKER: NOMINATED ADVISER: Hiroshi Funaki Philip Secrett LCF Edmond de Rothschild Securities Grant Thornton Corporate Finance T: (44) 20 7845 5960 T: (44) 20 7383 5100 F: (44) 20 7845 5961 Philip.J.Secrett@gtuk.com funds@lcfr.co.uk MEDIA RELATIONS: Sophie Hoggarth Pacific Alliance Group T: (86) 21 6113 5818 shoggarth@pacific-alliance.com Andrew Walton Financial Dynamics, London T: (44) 20 7269 7100 Christine Wood / Queenie Tsao Financial Dynamics, Asia T: (852) 3716 9800 Notes to Editors: Pacific Alliance China Land Limited ("PACL") (AIM: PACL) is a closed-end investment company that was admitted to trading on the AIM Market of the London Stock Exchange in November 2007. PACL is focused on investing in a portfolio of existing properties, new developments, distressed projects and real estate companies in Greater China. For more information about PACL, please visit: http://www.pacl-fund.com Pacific Alliance China Land Limited is a member of Pacific Alliance Group ("PAG"), one of the leading Asian alternative investment managers. Founded in 2002, PAG manages funds covering private equity, real estate, hedge fund and distressed investments and has offices across Asia including Hong Kong, Shanghai, Beijing and Tokyo. For more information about Pacific Alliance, please visit  http://www.pacific-alliance.com This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Pacific Alliance China Land Limited via Thomson Reuters ONE