Z25 - Yanlord Land Group Limited

Yanlord Land Group Limited1 is a real estate developer based in the Peoples Republic of China that focuses on developing high-end residential property projects.

As of December 31, 2006, the Company had a portfolio of completed property developments with a total gross floor area (GFA) of 1,869,911 square meters. It had a further 1,304,363 square meters GFA of properties under development, and 1,907,515 square meters GFA of properties held for future development. It also provides property management services primarily for the projects it has developed.

The Company operates through its subsidiary, Yanlord Land Pte. Ltd. In September 2007, through its wholly owned subsidiary, Yanlord Land Pte. Ltd., acquired East Hero Investment Limited. In September 2007, it acquired 75% stake in Shenzhen Long Wei Xin Investment Co., Ltd. In October 2007, the Company incorporated two wholly owned subsidiaries, Yanlord Land (HK) Co., Limited and Yanlord Land Investment Management Consultancy (Shenzhen) Co.

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SUMMARY

Industry Real Estate Transactions
Address 9 Temasek Boulevard #36-02 Suntec Tower Two Singapore 038989 Singapore
Phone 6563362922
Fax 6562386256

GRAFT CHARGES

According to a China magazine, Caijing, the group allegedly allowed a former Shanghai official - currently on trial for suspected corruption - to buy an apartment at a price substantially below market levels.

Caijing said in an online report that Yanlord allegedly allowed Kang Huijun, former deputy chief of the Pudong district in Shanghai, to buy a luxury apartment at Yanlord Riverside Garden in the prosperous Lujiazui area, at a steeply discounted price of 8,300 yuan (S$1,719) per square metre in 2001, at a time when the prevailing market price was 11,000-12,000 yuan per sq m.

In 2006, Yanlord allegedly bought back the apartment from Kang at a price of 8,300 yuan per sq m and later sold him a larger apartment measuring over 300 sq m at the same price. The gap between purchase price and market price totalled about 4.89 million yuan, according to Caijing.

Kang was reportedly detained in November last year because of allegations that he used his position to help Yanlord secure land use rights to several plots of land in Pudong. He has been accused of taking bribes worth a combined 5.99 million yuan in six separate instances and was alleged to have 11.84 million yuan of personal property of unexplained origin.

The official was also the general manager of Lujiazui Group, a government company that is in charge of developing the Lujiazui financial district in Pudong. Kang was also said to be accused of helping Yanlord to gain permission for blocks SB4-1, 2, 3 and 4 as well as SB5-1 and 2 in Pudong.

The Shanghai Daily reported earlier yesterday that government prosecutors alleged that the former deputy chief of Shanghai's Pudong district accepted a 189 sq m apartment at the Yanlord Gardens complex in exchange for help in securing land development rights.

Besides the Yanlord case, Kang also allegedly received bribes from staff and friends in exchange for offering employment or providing other 'inappropriate' assistance, Caijing said.

YANLORD'S REBUTTAL

In a filing with SGX, the Chinese property developer said the prices at which its units were sold to Mr Kang were set in view of the publicity benefits his residency could have on the sale of units at the development.

Yanlord denied having received any help from Mr Kang to secure land-use rights.

According to Yanlord, Mr Kang and his family have been residents of the luxury condominium Yanlord Gardens in Pudong since 2001.

Mr Kang sold this apartment in March 2006 and bought a larger but old showflat in Yanlord Gardens as a residence.

Both units were priced based on the launch prices of apartments in Yanlord Gardens Phase 1, Yanlord said.

'The group reiterates that the above transactions fall within the ordinary course of its business involving sale and promotion of our apartment units.' it said.

Yanlord also rebutted news reports that said that Mr Kang, from 1993 to 2001, abused his capacity as vice-governor of the Pudong New District by giving Shanghai Yanlord the land-use rights to parcels SB4-1,2,3,4 and SB5-1,2 in Pudong Century Avenue for development into Yanlord Gardens.

'The company wishes to state categorically that the above statement is untrue as Shanghai Yanlord did not receive any assistance from Mr Kang in obtaining the land-use rights of any land parcels,' the group said.

It said all its land acquisitions, including purchases through public tenders and auctions, are conducted 'in a legal and transparent manner in accordance with the relevant governing rules and regulations'.

NEWS

  • September 26, 2008 - Yanlord dismisses rumours of links with China graft case2 - YANLORD Land Group yesterday dismissed market rumours of links with a graft case concerning a former Chinese official and lifted the trading halt on its shares.
  • September 25, 2008 - Yanlord shares hit by graft trial of China ex-official3 - SHARES of Yanlord Group went into a tailspin yesterday, hurt by market rumours linking it to a corruption trial in Shanghai involving a former Chinese official.
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