[ET Net News Agency, 15 November 2017] Yuexiu Property (00123) said it agreed to sell
67% equity interest and shareholder's loan of a property in Wuhan to a special purpose
vehicle owned and controlled by Yuexiu Real Estate Investment Trust (00405) for Rmb2,281
million.
Upon completion, the two companies will form a joint venture company, of which Yuexiu
Property will own 33% interest and Yuexiu REIT will own 67% interest.
The property comprises the entire 68-storey office and commercial development known as
"Wuhan Yuexiu Fortune Centre"; the entire 5-storey shopping arcade known as "Starry
Victoria Shopping Center" (inclusive of a 1-storey basement); the 1,134 Commercial Carpark
Spaces with a gross floor area of 47,182.94 square metres; and the 375 Residential Carpark
Spaces with a gross floor area of 15,602.82 square metres. The property is a part of a
larger integrated development project which also includes, among other things, a
residential development known as "Starry Winking" and its ancillary facilities.
It is estimated that the Yuexiu Property Group will record a gain (after taxation) of
about Rmb400 million. It is expected that the net proceeds will be applied towards the
working capital of the Group. (HL)