Peking University Resources (Holdings) Company (PKU Resources) has acquired 12 property development projects owned and operated by Fine Noble Global and Peking University Resources Group Property for HK$1.93 billion (US$249 million).

The total consideration for the acquisition includes HK$1.361 billion for the offshore acquisition and HK$573 million for the onshore acquisition. The payment will be made via the company's internal cash, the issuance of consideration shares to the controlling shareholder Founder Information (Hong Kong) and all or part of the cash proceeds from the issuance of placement shares, the company said in a statement. As a very substantial acquisition and connection transaction, the acquisition is subject to a number of conditions including the approval of the Stock Exchange of Hong Kong and independent shareholders.

The assets to be acquired include 12 property development projects: PKU Resources-Jiangshan Mingmen; PKU Resources-Yannan; PKU Resources-Boya and PKU Resources-Yuelai in Chongqing; PKU Resources-Boya Binjiang in Foshan, Guangdong; PKU Resources-Shanshuinianhua in Wuhan, Hubei; PKU Resources-Time in Changsha, Hunan; Xinduxinyuan and PKU Resources-Boya Huafu in Qingdao, Shandong; PKU Resources-Dream City in Guiyang, Guizhou; and PKU Resources-Yannan International and PKU Resources-Xishanyue in Chengdu, Sichuan. These projects are to be used for residential, commercial or office purposes, with a total permitted gross floor area of 5,393,796 sq.m.

It has also entered into a master trademark licensing agreement with PKU Resources Group under which the company and its subsidiaries are licensed to use the trademark of PKU Resources Group in its property development projects.

Under the master loan agreement signed by both parties, the company and its subsidiaries can borrow loans from PKU Resources Group and its associates. The agreement can effectively reduce its working capital pressure and support the needs of the company's property development projects.

Moreover, PKU Resources Group will provide pre-sale property management services and landscape construction services.