Shui On Land, SOCAM Dev to sell stake in Dalian project

    Shui On Land (00272) said it agreed to sell 61.54% equity interest in Richcoast Group Limited and loans for Rmb3,160 million to Yida China (03639).
  Richcoast is an investment holding company and through its subsidiaries, holds 78% interest in the Dalian Tiandi property development project and the remaining 22% of which is held by the Yida Group. 
  The Shui On Land Group expects to recognise a loss of about Rmb495 million from the disposal. The net proceeds of Rmb3,102 million will be used by the Group to further reduce bank borrowings and for general working capital purpose.
  SOCAM Development (00983) said it agreed to sell 28.2% equity interest in Richcoast Group Limited and loans for Rmb1,300 million to Yida. The SOCAM Development Group expects to recognise a loss before transaction cost of about HK$132.6 million. The proceeds will be used by the Group to further reduce its borrowings and for general working capital purpose.
  Upon completion, the target company will become a wholly-owned subsidiary of Yida.
  The project is jointly developed and operated by the Shui On Land Group, the SOCAM Group and the Yida Group, being a large-scale integrated development in Dalian, the PRC, with an estimated developable gross floor area of around three million square metres comprising software offices, residential, commercial and retail properties, hotels and educational facilities.