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Pacrim International Capital Inc. announces proposed real estate development in China by Wah Sang Paper Products

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^{Published in House and Home on Wednesday, August 10th 2011 at 4:46 GMT by Market Wire}  

HONG KONG, Aug. 10, 2011 /CNW/ - PACRIM INTERNATIONAL CAPITAL INC. (TSX: PCN) ("Pacrim") holds 46% of the outstanding common shares of Pacrim International Capital Holdings Inc. ("PICH"), a holding company with business interests in the People's Republic of China consisting of an indirect 75.07% interest in Wah Sang Paper Products (Shenzhen) Co. Ltd. ("Wah Sang"), a corrugated packaging company.  Wah Sang's packaging operations are located in the Pingshan New Area, Longgang District of Shenzhen, a city in southern China close to Hong Kong.

Pacrim is pleased to announce that it has been advised that Wah Sang is at the early stages of considering with neighbouring landlords a proposed large real estate development for its parcel of land and surrounding properties.  Wah Sang's property will be only 700 meters from the East Station of the Xiamen-Shenzhen Railway, a high-speed rail line on the southern coast of China and part of the Southeast Coast High-Speed Rail Corridor. The East Station is expected to open in 2012.  This rail corridor will extend to Shanghai, linking coastal cities from Shenzhen to Shanghai.  The municipality of Pingshan is to become a Commercial Business District of Shenzhen.

The development would include a 375,000 square meter office tower, residences, a hotel, a two story underground shopping mall and a number of commercial and apartment buildings.  The commercial and residential complex would be carried out as part of a redevelopment programme for the Pingshan New Area.  Wah Sang has started discussions and negotiations with the neighbouring landlords to create a project development company to develop an area of 218,000 square meters.  The project would be expected to take three to five years to complete at a cost in excess of U.S. $1 billion.

Wah Sang's own property consists of 48,643 square meters.  An independent valuation of Wah Sang's land at January 14, 2011 valued the property at RMB 850,000,000, equivalent to CDN $130,730,000 at present exchange rates.  The zoning of the area has been changed from industrial to commercial/residential, which allows for the proposed project.  The packaging business of Wah Sang will be relocated to a less valuable property in due course.

Wah Sang has engaged Dominick & Dominick LLC ("Dominick"), a private wealth management company and investment bank based in New York City, to help secure funding for the real estate development project.  Dominick, founded in 1870, is registered with the Financial Industry Regulatory Authority (FINRA) in the United States and is a member of the Securities Investor Protection Corporation (SIPC) there.

Guy Lam, the Chairman of Wah Sang and Chairman and Chief Executive Officer of Pacrim commented, "The proposed real estate project is an exciting opportunity for both Wah Sang and Pacrim.  Management of Wah Sang intends to use its real estate experience and knowledge of China to help advance the project to the fullest extent possible."

Caution concerning forward-looking statements

Statements made in this news release, other than those concerning historical financial information, should be considered forward-looking, including the proposed real estate development project described herein, and subject to various risks and uncertainties.  Some forward-looking statements may be identified by words like "may", "will", "anticipate", "estimate", "expect", "intend" or "continue" or the negative thereof or similar variations.  Readers are cautioned not to place undue reliance on such statements, as actual results may differ materially from those expressed or implied in such statements.  Factors that could cause results to vary include, but are not limited to: risks associated with China including state ownership, government sector intervention, foreign investment, repatriation of profit and currency conversion, tax, the developing legal system, protection of intellectual property rights, shareholder rights and enforcement of judgments, permits and business licenses, appropriation, political stability considerations, the central planned economy, fluctuations in foreign exchange rates and Chinese accounting and auditing standards; risks in business and operations including risks associated with expansion, future capital requirements, dependence on key personnel, environmental regulation, competition, risk in purchasing abroad, risk of change in the price of raw materials, product price volatility, insurance and operating plant risk; customer risk including risk of a single market and risk depending on major customers; technical risk including risk in the advance of technology and risk of relying on technology abroad; financial risk including foreign exchange risk, credit risk, liquidity risk, cash flow and fair value interest rate risk; investment strategy risk; and short term management transition risk.

We caution that the foregoing list of factors is not exhaustive and that when reviewing our forward-looking statements, investors and others should refer to the "Risk Factors" section of Pacrim's Annual Information Form, the "Risks and Uncertainties" and other sections of our Management's Discussion and Analysis and our other periodic filings with Canadian securities regulatory authorities.  All forward-looking statements presented herein should be considered in conjunction with such filings.  Except as required by Canadian securities law, we do not undertake to update any forward-looking statements, whether written or oral, that may be made from time-to-time by us or on our behalf; such statements speak only as of the date made.