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Chun Wo to acquire 90% equity in China City Construction (Zhuhai)
Chun Wo Development Holdings will acquire 90% equity interest in China City Construction Holding Group (Zhuhai) Property Co at a total consideration of 315 million renminbi (US$51.29 million).
The Asset 19 Mar 2015
Chun Wo Development Holdings will acquire 90% equity interest in China City Construction Holding Group (Zhuhai) Property Co at a total consideration of 315 million renminbi (US$51.29 million).
 
The key asset of China City Construction (Zhuhai) is mainly a parcel of land located to the south of Haizhou Road and the east of Jiuzhou Avenue East, in Jida, Xiangzhou District, Zhuhai City, Guangdong Province, the PRC, with a total site area of nearly 10,000 sq. m. The parcel is to be developed into a commercial building with a GFA of about 101,136 sq. m. China City Construction Holding Group Co., holds a 25% equity interest indirectly in China City Construction (Zhuhai) and is its single largest shareholder.
 
China City Construction is a national grade enterprise principally engaged in urban development, investment and construction projects in China. Its extensive experience encompasses property development and operation, construction, decoration and renovation, road and bridge construction, landscape and greening projects, piping engineering projects, waterwork engineering projects, and investigation and design works and it has obtained approval to import and export construction materials in China.
 
As the strategic shareholder, China City Construction had collaborated with the Group to secure a tender for a parcel of land located at Yiu Sha Road, Whitehead, Ma On Shan. Both parties are planning to co-develop a commercial property project in Zhuhai. The transaction and joint project planning strongly demonstrate the complementary development and operational philosophies of the two parties.
 
The Zhuhai development project to be acquired possesses good locational advantage and is situated in a prime business location within the Pearl Delta River region. It is near Jiuzhou Port and takes only five minutes ride by car. It also takes a car ride of only eight to 10 minutes to the Hong Kong-Zhuhai-Macao Bridge. The commercial building project is surrounded by the sea on three sides with a sea view on the Pearl River Estuary as well as a panoramic view of Taipa in Macau and South Lantau Island in Hong Kong.
 
The supply of grade A commercial buildings in the market is relatively scarce. Together with closer transport links and more frequent business and trade activities in the Pearl River Delta region, the demand for grade A commercial buildings in the region is expected to increase continuously. Upon completion scheduled in the first half of 2016, the new building is expected to contribute cash flow and revenue to the Group afterwards. WFC is the grade A commercial building in the vicinity and its selling price per sq. m. is 27,000 renminbi.
 

    

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