Our philosophy in developing special situation projects is based on the distressed property development model characterised by shorter project cycles and less cash-flow requirements than traditional greenfield developments. As a results, this business model helps us to generate stronger cash flow for new project acquisitions and portfolio expansion.
Our focus of this business is primarily on the acquisition of medium-to-large-scale, partially-completed property projects in prime locations in major and secondary cities in the Chinese Mainland, which have become available largely as a result of their owners' financial constraints. Once acquired, the projects will be upgraded and, upon completion, will either be sold or leased. At 31 December 2012, SOCAM owned a diversified portfolio with a total developable gross floor area (GFA) of approximately 2.73 million square metres and an attributable GFA of approximately 2.16 million square metres, spanning Beijing, Chengdu, Chongqing, Guangzhou, Guizhou, Shanghai, Shenyang and Tianjin.
Here we would like to share with you our track records of high quality properties turned around in special situations.