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Sizable and low-lost landbank
Dynasty's in-depth understanding of the property market has enabled it to seek and capitalize on land acquisition opportunities. We have accumulated land reserves primarily through acquisitions of project companies owned by third parties at a relatively early stage, allowing us to capture the long-term appreciation potential of the land. For example, we signed an agreement to acquire Dubai Future City and Taiyuan Olympic Garden at competitive prices, both with a significant amount of GFA which will enable us to develop on a phase-by-phase basis so as to realize stronger profits as a result of land appreciation.
As of Dec 31, 2007, Dynasty has completed 17housing projects in the last 14 years, representing 910,743 sqm gross floor area (GFA). Currently, Dynasty has 12 projects under development in 6 cities for a total of 938,943 sqm and a land reserve for future development of 7,444,457 sqm.
Development sites are strategically located in cities with high economic growth. The cost of our land reserves is substantially lower than the current market value, which enables Dynasty to offer competitive prices on its developed properties while achieving attractive returns.
Experienced management team with in-depth knowledge of the PRC's real estate markets
Dynasty's current management team has extensive knowledge and experience in the property sector in the PRC. Our management team includes 38 senior Taiwanese executives, supported by 30 local Chinese executives, with a perfect blend of Taiwanese executives of know-how, language, ethnicity and culture.
Each local management team is headed by an experienced general manager with an average of more than 15 years experience in both Taiwan and the PRC property industry. Dynasty believes this experience enables us to understand the trends in China's real estate markets and identify cities with significant growth potential.
In addition, Dynasty maintains strong working relationship with local governments. We are recognized as a preferred developer by the government, which gives Dynasty a significant advantage in obtaining major development sites and allows us to maintain a sufficient project pipeline that is integral to our ongoing growth. Given our track record in building quality and representative projects commanding premium prices, our property developments are often visited by government officials from around the PRC. These visits often lead to invitations for Dynasty to participate in development projects in new cities. This gives Dynasty a competitive advantage in identifying and acquiring major sites for our future developments.
Focused end market strategy: 14 years of experience in middle-end residential property development
Since 1994, Dynasty has been focused on the middle-end quality residential property market in the PRC targeting middle-income consumers. This market segment is anticipated to have significant growth potential due to the growing middle-class population in the PRC. We expect that the demand for mid-range residential and commercial properties will remain strong, supported by the expected continued growth of the economy in China.
Therefore, the designs and planning concepts are carefully catered to meet the needs and expectations of the target customers and endeavors to provide affordable and quality products for different levels of purchasing power in the middle-end market. Dynasty believes this focused strategy best enables us to accumulate experience and ability in the target market segment and ensures successful market share acquisition and brand recognition nation-wide. |
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