Karrie International is one of the manufacturing operations encouraged by the PRC government to relocate from the new urban areas to designated industrial zones, in order to better utilize land plots occupied with old factory buildings. Under the policy, we have obtained approval from the authorities to convert an industrial land parcel of over 60,000 square metres and a gross floor area of approximately 120,000 square metres into a residential project.
Seizing the opportunity to capitalize on our urban renewal experience, we have launched and planned a number of real-estate projects to harness the untapped value of land reserves held by us, in a move to maximize shareholder value and achieve sustainable growth.
(1) The Guanjingtou Plant modification project
In responding to the local government’s urban, plant and village policy, the old Guanjingtou Plant in Fenggang, Dongguan has been relocated to Yuquan, Fenggang, Dongguan. The relocation was completed successfully in 2016. The original Guanjingtou plant had a site area of approximately 60,000 square meters and a gross floor area of approximately 120,000 square meters, which will be developed into a residential project for the Fourth and Fifth Phases of Castfast Villas.
(2) New Cooperation Agreement Development Project:
The Company has invested HK$140,000,000 in the residential project of the Third Phases of Castfast Villas which was jointly developed with the Company’s substantial shareholder. The project covered an area of approximately 32,000 square meters, which could be developed into a total of more than 600 residential units with a floor area of over 61,000 square meters. The Company would enjoy 50% of the profits derived from this development project under cooperation agreement.
(3) Refurbishment Project of 47 residential units
The 47 residential units in Area B, Castfast Villas, Fenggang, which were purchased and refurbished in 2016, have a floor area of approximately 3,600 square meters.
(4) Boluo County residential project
In February 2017, the Group won the tender of a piece of land in Boluo County of Huizhou for a residential development project, with a gross floor area of approximately 30,000 square meters.
(5) Yantian Plant
Regarding the approximately 20,000 square meters land plot of the idle Yantian Plant in Fenggang, Dongguan, the Group is actively discussing on the plan of the change in land use and modification of the old plant buildings to better use the land resources so as to enhance the potential value of the land with the relevant local authorities. It is hoped that an agreement can be entered into as soon as possible to enrich the Group’s real estate projects.