SHENYANG, China, March 17, 2006 (PRIMEZONE) -- Great China International Holdings, Inc. (OTCBB:GCIH) announced today that its subsidiary, Shenyang Jitian Property Co. Ltd., was the successful bidder in a public auction of approximately 104 acres of land selected for residential and commercial development in the Chessboard Mountain International Tourism Development district in Shenyang City, China. The total purchase price for the property is approximately $56.7 million USD.
Shenyang Jitian Property Co. intends to use primarily bank financing for the transaction and is negotiating extended payment terms with the Land Reserve Exchange Center, which offered the property for auction.
"We are excited about the potential of this project, which is ideally situated with both mountain and river views," said Zhiren (Paul) Deng, who was named chief executive officer of Great China International Holdings earlier this month. "Our next step is to arrange financing, which we are pursuing through a number of sources."
Deng said if Great China fails to negotiate extended payment terms and make required payments when due, the company may forfeit any deposits and interest on the property. Great China also would be required to pay the cost of another auction for the property or may seek to sell the rights to another bidder.
About Great China International Holdings
Founded in 1989, Great China International Holdings' wholly owned subsidiary, Shenyang Maryland International Industry Co., Ltd., is one of the largest non-state-owned real estate developers in Northeast China. The company's core business is premium residential and commercial development and management. It currently owns and manages the President Building, which was completed in April 2002, with 25 tenants comprised of Fortune 500 companies, including General Electric (China) Co., Ltd., Johnson & Johnson, Kodak and Philip Morris. The company's prior developments included the Maryland Building, Roma Resort Garden, Qiyun New Village, Peacock Garden, University Campus of Shenyang Teacher's University, and Chenglong Garden, mostly located in Shenyang.
Forward-Looking Statements
Statements in this press release may be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, including, but not limited to, the company's ability to arranging financing for the Chessboard Mountain project, are based on current expectations, estimates and projections about the company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and probably will, differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and those risks discussed from time to time in the company's filings with the Securities and Exchange Commission.