Benzinga | Aug 6, 2021 06:53AM EDT

Nam Tai Property Obtained Pre-Sale Permits For Towers 1, 2, 6 Of Nami Tai - Longxi

Nam Tai Property Inc. ("Nam Tai" or the "Company") (NYSE:NTP) today is pleased to announce that the Company (through its subsidiary) obtained the pre-sale permits for towers 1, 2 and 6 of Nam Tai * Longxi on July 30, 2021. The Company commenced the pre-sale of the first batch of approximately 260 residential units which are equivalent to 27,899 square meters on August 6, 2021 (the "Unit(s)"). The average per-square-meter sales price of the Units will be no more than RMB22,939 (or USD3,551) which is in accordance with the approval of the Bureau of Housing and Urban Rural Development of Dongguan.

Dr. Lai Ling Tam, Executive Chairman of the Company, commented, "The Company has been operating in a challenging environment with limited financial resources, delaying construction progress. The commencement of the pre-sale of Nam Tai * Longxi is one of the key steps in addressing the liquidity issues that are slowing progress. The Board and management team have been diligently executing against our corporate strategy, and will continue acting in the best interest of our shareholders."

RISKS RELATED TO THE PRE-SALE OF NAM TAI * LONGXI

The PRC government has been rolling out restrictive measures with the objectives to curb the rapid price increase in housing and speculation activities. In particular on the Dongguan housing market, the local government has also promulgated restrictive measures to curb rapid rise in housing price. For instance, on February 27, 2021, the Bureau of Housing and Urban Rural Development of Dongguan, Municipal Natural Resources Bureau and six other departments jointly issued a "Notice on the Further Regulating of the Real Estate Market Regulation" to curb speculation and excessive price increases. On April 29, 2021, the Bureau of Housing and Urban Rural Development of Dongguan, the Trade and Industry Department of Dongguan and the Immovable Property Registry of Dongguan have jointly issued a "Notice on Further Guiding the Selling Price of Commodity Housing" to restrict the pricing of the newly marketed commodity housing. Further, on July 9, 2021, the Bureau of Housing and Urban Rural Development of Dongguan has issued a "Notice on Declaring the Pricing of the New Commodity Housing Project" stipulating the rules to control the price of the new commodity housing and land tendering so as to curb speculation and excessive price increases. On August 2, 2021, the Bureau of Housing and Urban Rural Development of Dongguan, Municipal Natural Resources Bureau, Dongguan Administration for Market Regulation, and the Immovable Property Registry of Dongguan have jointly issued a "Notice on the Further Regulating of the Real Estate Market" to restrict the pricing of the newly marketed commodity housing and to curb market speculation. Even though the Company has obtained the pre-sale permits, there is no assurance that the pre-sale will be successful and we will receive payments regarding the pre-sale in a timely manner from the purchaser of Nam Tai * Longxi and/or their respective mortgagees, which may adversely affect our liquidity and financial condition.