SHENYANG, China, July 26, 2006 (PRIMEZONE) -- Great China International Holdings, Inc. (OTCBB:GCIH) today announced that its subsidiary, Shenyang Jitian Property Co., Ltd., ("Jitian"), has entered into a loan agreement to receive proceeds of approximately US$6.25 million (RMB 50,000,000) with Shenyang City Commercial Bank (Holdings) Co., Ltd.
Funds will be used for the initial stages of development of the company's recently-acquired Chessboard Mountain residential project, a parcel of approximately 4.5 million square feet of land in the Chessboard Mountain International Tourism Development District in Shenyang, China.
"Financing to continue developing the Chessboard Mountain project at a robust pace is a key objective for the company," said Zhiren (Paul) Deng, chief executive officer. "We are pleased to have Shenyang City Commercial Bank as a strategic banking and business partner. This loan marks an important step to support the start of construction."
The loan agreement, which has a term of three years and bears interest at a rate of 6.633%, shall be required to be repaid by the end of the term of the loan agreement. Under the terms of the loan, Shenyang City Commercial Bank (Holdings) Co., Ltd. is entitled to cancel the agreement and declare any amounts advanced due and owing. Shenyang Maryland International Industry Co., Ltd., another subsidiary of the company, has agreed to guarantee all amounts owing by Jitian, and Shenyang Maryland has also agreed to mortgage a portion of its property at the company's President Building project as security for performance of its obligations under the loan agreement.
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.