NEW YORK, Sept. 10, 2015 (GLOBE NEWSWIRE) -- Kirin International Holdings Inc., (OTCBB:KIRI) (the "Company") a non-state-owned real estate development company focused on residential and commercial real estate development in "tier-three" cities in the People's Republic of China, today announced the execution of a Memorandum of Understanding ("MOU") with privately held corporations Jasper Lakes Holdings Limited and Crestlake Holdings Limited, to acquire a 100% interest in Wuhan Yangtze River New Port Logistics Co., the owner of Wuhan Yangtze River Newport Logistics Center. Pursuant to the MOU, the Company will issue 166 million shares of stock as consideration for this acquisition. This transaction is subject to execution of definitive documents between the parties.
The Wuhan Yangtze River Newport Logistics Center is an extensive complex which is located in the Hubei Province of The People's Republic of China, a major transportation hub, with dozens of railways, roads and expressways passing through the city of Wuhan and connecting to major cities in Mainland China, with connections to international centers of commerce and business. Wuhan Yangtze River Newport Logistics Center will include six major operating zones including a port operation zone, a warehouse and distribution area, a cold chain logistics area, a ride loading area, and exhibition area and a residential zone. The port is built up with eight 5,000-tons berths, with sufficient water depth to allow 5,000 to 10,000 tons of shipping. The warehouse area occupies a total of 1.2 million square meters of which a warehouse area of 400,000 square meters will be built. The commercial zone consists of a total of 500,000 square meters of which, 700,000 square meters of commercial buildings can be constructed. The Wuhan Yangtze River Newport Logistics Center will be a major component of the "One Belt One Road" Initiative of the People's Republic of China. The massive infrastructure program is being implemented to advance trade in the East and West, by making the transportation of goods easier. When complete, the New "Silk Road" will be a comprehensive world trade route.
Project Highlights:
- The shipping center of Wuhan closely linked to China policy to promote the "Yangtze River Economic Belt"
- The advantages of the Wuhan port along the Yangtze River actively applying the "Free Trade Zone"
- "Yangluo Comprehensive Bonded Zone" allows the enterprises in the zone enjoy export tax rebates, and the transaction does not levy value-added tax and consumption tax
Wuhan recently launched the "Chinese New Europe" International Railway. Currently, the railway has achieved normalized operations and acts as a land bridge for EU-China trade. A large number of export trading enterprises, through the "Chinese New Europe" International Railway, supply their products to Central Asia and Europe
Additional Details:
- Kirin shall acquire 51% and 49% equity in the Wuhan Yangtze River Newport Logistics Center from Jasper Lake and Crestlake respectively Kirin will acquire the 100% equity in this acquisition from Jasper Lake and Crestlake by issuing 166M shares valued at US$10 per share (a premium of 354% against Kirin's close price US$2.20 as of August 31, 2015) based on an independent valuation of $1.66b of Wuhan Yangtze River Newport Logistics Center
Jianfeng Guo, Chief Executive Officer, Director and President of Kirin International Holdings Inc., stated, "We are very pleased to join with Jasper Lake Holdings Limited and Crestlake Holdings Limited to acquire such an extensive commercial property with limitless possibilities. International trade continues to be the cornerstone of the global economy and we welcome the addition of The Wuhan Yangtze River Newport Logistics Center into the Company's portfolio of assets. Together with our growing residential property portfolio, this new, enormous asset will allow the Company to increase its presence across China, and expand our footprint into the international arena, diversifying the assets of Kirin Holdings International."
ABOUT KIRIN INTERNATIONAL HOLDING, INC.
Kirin is a Nevada corporation that operates through its wholly-owned subsidiary, Kirin China, a non-state-owned real estate development company focused on residential and commercial real estate development in "tier-three" cities in the People's Republic of China ("PRC"). Tier-three cities are provincial capital cities with ordinary economic development and prefecture cities with relatively strong economic development. Kirin China's projects are currently concentrated in Hebei Province of the PRC, primarily in the city of Xingtai, and nearby regions. Hebei Province is located in the North Region of the PRC. Kirin China intends to also focus on the Bohai Sea Surrounding Area, which comprises Beijing, Tianjin, Hebei Province, Liaoning Province and Shandong Province
FORWARD-LOOKING STATEMENTS
This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, which contain words such as "expect," "intend, "believe," or "plan," by their nature address matters that are, to different degrees, uncertain. These uncertainties may cause actual future events to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.