Press Release Management and Operation Agreement Signed with Frasers Hospitality on Serviced Residences in Chengdu
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1 Yanlord Land Group Limited Press Release Management and Operation Agreement Signed with Frasers Hospitality on Serviced Residences in Chengdu YANLORD SEALS ANOTHER AGREEMENT WITH FRASERS HOSPITALITY TO MANAGE AND OPERATE SERVICED RESIDENCES IN CHENGDU, PRC; FOLLOWS STRATEGIC INITIATIVE TO DEVELOP INVESTMENT PROPERTIES Singapore / Hong Kong 3 July 2007 Yanlord Land Group Limited ( Yanlord or the Company, and together with its subsidiaries, the Group ), a real estate developer focusing on developing high-end integrated residential and commercial properties in strategically located key and high-growth cities in the People s Republic of China ( PRC ), via its wholly-owned subsidiary, Yanlord Land (Chengdu) Co. Ltd, has entered into an agreement with Frasers Hospitality ( Frasers ) for the latter to manage and operate serviced residences of Yanlord Landmark in Chengdu city. This is Yanlord s second agreement with Frasers following the management agreement signed in relation to Fraser Suites Nanjing in August 2006 and follows the Group s growth strategy to expand into integrated residential and commercial property developments to generate stable and recurrent revenue streams to complement its existing businesses of residential property development and property management. To be marketed as Fraser Suites Chengdu and expected to be opened in the first half of 2010, the development is envisaged to be Chengdu s first internationally-branded serviced residence and will be an iconic building with 310 service residence apartments; dedicating two floors of lifestyle wellness, health and sports facilities such as an integrated café and lounge, games room, children s playroom, library lounge, swimming pools and a fitness club that is complete 1
2 with aerobics room and steam and sauna rooms, that are specifically designed to meet the needs of business travelers and their families. The Retreat, Frasers award-winning meeting facility is also available for meetings and conferences. Fraser Suites Chengdu will offer residents with 24-hour access to one-stop services, which includes personalised maid and concierge services. Situated at the economic and transportation crossroads of Western China, Chengdu has attracted an influx of foreign investments and is undergoing a strong growth phase. Based on information from the Chengdu Statistics Bureau, between 2000 and 2003, Chengdu experienced rapid economic growth, with an average annual GDP growth rate of approximately 14.2%, while GDP for 2006 and 2005 grew 13.8% and 16.7% respectively on a year-on-year basis. Chengdu s annual disposable income per capita grew at a compounded rate of 9.7% between 2000 and 2005, and had reached RMB 11,359. This rate of growth continued unabated in 2006, with disposable income rising 12.6% to RMB 12,789. Key sectors such as the electronics and information technology industry, the automobile and aviation industry and the pharmaceutical industry are the major drivers to the economic growth of the city. Following the general trend of increasing economic activities and foreign direct investments, the increasing presence of Multi-National Companies ( MNCs ) has led to a growing number of expatriates in this region. Leveraging on the rapid economic development in Chengdu, Chengdu Yanlord Landmark an integrated commercial development situated in the heart of the Chengdu central business district, comprising a Grade A office tower, retail mall and serviced residences with gross floor area ( GFA ) of approximately 198,855 sqm will cater to the growing demand for prime commercial space and high-end service residences within the city. Ideally situated at the core of Chengdu s city centre close to Tian Fu Square and the historical Jin Jiang Hotel, Chengdu s central business, shopping and sightseeing district, Chengdu Yanlord Landmark will be integrated with the North-South underground mass transport system which is currently under construction and scheduled for completion by When completed in the fourth quarter of 2010, Yanlord Landmark will be a vibrant focal hub of Chengdu city which offers tenants, visitors and shoppers a mix of both worlds between business and recreation. 2
3 With the Central Government s launch of the Develop the West campaign six years ago, Chengdu today shines as an international vibrant city supported by strong transport infrastructure, including an international airport and a first-class technology centre. Robust growth of foreign investments has laid the foundation for significant economic development and led to an influx of expatriates into Chengdu. This has led directly to a strong demand for highend quality commercial and service residence property developments to cater to the influx of international business community. Having recognised Chengdu s potential in becoming a lucrative market for Yanlord, we embarked on our expansion into the city s property sector in Since then, we have attained significant first-mover advantage in the region and look forward to reaping the rewards of our investment and benefiting from the continued economic expansion through Yanlord Landmark when it is completed by 2010, said Yanlord s Chairman and Chief Executive Officer, Mr. Zhong Sheng Jian. Commenting on the business alliance with Frasers, Mr. Zhong said, We are pleased to conclude our second strategic partnership with Frasers for the development of premier serviced residences in the PRC. Leveraging on our strengths in property development and Frasers established reputation in premier serviced residences management, we will seek to leverage on our successful partnership to tap on the growing market demand for luxurious serviced residences by expatriates and business travellers in the PRC. We are privileged to partner with Yanlord who is well-known for their quality projects throughout China, and are excited with the opportunity to cater to the needs of a growing number of business delegates in Chengdu, spurred on by strong governmental initiatives to drive growth in the city. We are confident that Frasers emphasis on quality and personalised and intuitive services will set Fraser Suites Chengdu as a preferred choice for our customers, said Mr. Choe Peng Sum, Chief Executive Officer, Frasers Hospitality. For Frasers, Chengdu s geographical and economic advantage as a significant gateway in Western China, combined with its connectivity to international air travel makes it an important gateway city to establish the Frasers Brand in China, added Mr. Choe. ### End ### 3
4 About Yanlord Land Group Limited: Yanlord Land Group Limited is a real estate developer based in the PRC focusing on high-end integrated residential projects and integrated property development in strategically selected key and high-growth cities in the PRC. Since Yanlord took its first step to enter the PRC in 1993, Yanlord has successfully developed a number of large-scale developments for both international and domestic residents, such as Yanlord Gardens, Yanlord Riverside Gardens, Plum Mansions and Orchid Mansions. Following the success of its developments, the Yanlord name has been recognised as a premium brand within the property development industry in the PRC. Since 2001, Yanlord has extended its geographical reach into other PRC cities i.e. Guiyang, Chengdu, Zhuhai, Tianjin and Suzhou to capitalise on the rapid economic development. Its typical residential property development projects are large-scale, multi-phased projects designed and built by international architects and leading designers. To secure additional recurring revenue streams, the Group continues to proactively extend its commercial property development projects through the acquisition of land parcels for the development of retail malls, offices, hotels and serviced residences. When completed, these developments will contribute significantly to the financial performance and asset value of the Group. For more information, visit the website at About Frasers Hospitality (formerly known as Frasers Serviced Residences) Frasers Hospitality is a global serviced residence management company with Gold Standard residences in Bangkok, Glasgow, London, Manila, Paris, Seoul, Shenzhen, Singapore and Sydney. New developments include Bahrain (2008), Bangkok Sukhumvit (2007), Beijing (2007), Dubai (2009), Nanjing (2007), Shanghai (2007) and Tokyo (2008). The hospitality arm of Fraser & Neave, Limited, Frasers Hospitality commits to meeting the unique needs of the executive traveller through continuous innovation, and providing its customers with the space, family and community away from home. For more information, visit the website at 4
5 About Fraser and Neave, Limited and Frasers Centrepoint Limited Fraser and Neave, Limited (F&N) is a leading Asia Pacific Consumer Group with core expertise and dominant standing in the Food and Beverage, Property, and Printing & Publishing industries. A subsidiary of F&N, Frasers Centerpoint Limited (FCL) is a leading Singapore-based property company with a strong foothold in property development, property investment, serviced residences and investment funds. Under F&N s stewardship, FCL s business has evolved from a single shopping center along Orchard Road to a diversified real estate group, comprising shopping centres (Frasers Centrepoint Malls), serviced apartments (Frasers Hospitality), and residential homes (Frasers Centrepoint Homes). For more information, visit F&N s website at and FCL s website at MEDIA CONTACT Yanlord Land Group Limited Michelle Sze, Assistant to CEO Head of Investor Relations Phone: (852) michelle.sze@yanlord.com Edwin Hsu, Senior Manager Investor Relations Department Phone: (65) edwin.hsu@yanlord.com.sg WeR1 Consultants Pte Ltd Yim Jeng Yuh Phone: (65) yimjy@wer1.net ipr Ogilvy Limited Stella Lui Phone (852) stella.lui@iprogilvy.com 5
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