[ET Net News Agency, 11 September 2019] Yuexiu Property Company Limited (00123) said it
has secured the right to acquire a 51% interest in each of the New Metro Property projects
(collectively, the Luogang Project and Chen Tougang Project) from its ultimate controlling
shareholder for RMB8.91 billion.
The board is of the view that acquisition represents an important step to forging the
company's strategic co-operation with Guangzhou Metro and to pursuing its business
strategy of "Railway + Property".
Upon completion of the acquisitions, the GFA of the group's metro related projects will
increase to approximately 3.2 million m2, representing 14.9% of the current total land
bank of the group and 36.3% of its land bank in first-tier cities, in each case.
The Luogang project is strategically located adjacent to the Xiangxue Station of the No.
6 subway line. It is the only sizeable parcel of land in the core area of Huangpu
District, Guangzhou on which a mixed-use property complex comprising residential buildings
and educational facilities can be developed.
The Chen Tougang Project is located east of Chen Tougang Station on the No. 22 subway
line. It is a rare and sizeable residential-only property development project in the Panyu
District, Guangzhou. The value of the Chen Tougang Project is expected to increase
corresponding to the commencement of the No. 22 subway line's operation in 2020. (KL)