Prosperity Minerals Holdings Limited is an iron ore operator serving the People's Republic of China ("PRC") and a real estate owner and developer in the same market. It is also an investor in two PRC cement manufacturers.
Following an announcement on 10 November 2011, presales of the first phase of residential units at Oriental Landmark, Guangzhou City, commenced on 25 December 2011. The units are being offered at an average price of approximately RMB 32,000 per square metre which is in line with current market prices for similar new developments in the area. Of the 184 units put up for sale, 79 units were sold in the first two weeks up to 8 January 2012. This is encouraging with both prices and results in line with the Company's expectations.
The Company continues to monitor prevailing market conditions to determine presale schedules and prices for units in the remaining three residential blocks and expects presales of all four residential blocks to have commenced by the end of 2012.
Prosperity acquired the Oriental Landmark property development project, previously referred to as Dongfang Wende Plaza, in August 2010. Please refer to the Company's announcements on 1 June 2010, 30 July 2010 and 16 August 2010 for further information on the acquisition. Since acquisition, the Company has incurred some additional construction costs, administrative expenses and PRC taxes. Nonetheless, based on current presale results and market conditions, management expects a good return on the sale of the residential units in this development.
Commenting, Mr. David Wong, Chairman and CEO, said: "Current presale results reflect the strong demand for high end residential property in downtown Guangzhou City. I believe presales from all the residential units, once completed, will provide the Company with a good return and that rental income from the commercial units will provide long term recurring income."