Kardan unit plans Chinese expansion

GTC China is involved in six projects in four cities, and has land in five others.

Kardan NV (TASE: KRNV;AEX:KARD) unit GTC Real Estate China Ltd., held through Global Trade Centre Real Estate NV (TASE:GTC) is building with its partners 21,247 apartments in five projects and a 50,000 square meters mall across China. GTC China CEO Erez Applerot gave the presentation today.

GTC China is currently operating in four cities: Changzhou, Chengdu, Shenyang, and Xian, and is planning projects in other cities, with 3-10 million residents each, where it has land rights. The company focuses on what it calls China's tier II and III cities, which have greater potential for returns than the tier I cities of Shanghai, Beijing, Guangzhou and Shenzhen. The company is looking at Nanjing, Jilian, Dalian, Hanzhou, and Wuhan.

GTC China develops the projects with Chinese and Hong Kong partners, and owns between 45% and 75% of each project.

Applerot noted that China first allowed people to own their apartments in 1998, and that the company has already sold 5,000 of the apartments under construction.

Today's presentation comes just days after another GTC subsidiary, Global Trade Centre Poland SA (WSE:GTC) (GTC Poland) announced plans to enter Russia and Ukraine by investing in Europort Ltd. (TASE:ERPT.B1).

Published by Globes [online], Israel business news - www.globes-online.com - on July 17, 2008

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

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