Yuexiu Property (00123) to sell stake in Wuhan project

    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.