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| Plans to Develop into a Complex with Residential, Commercial, Light Industries and Retail Facilities |
HONG KONG, Nov 5, 2013 - (ACN Newswire) - Shanghai Zendai Property Limited ("Shanghai Zendai"/ "the Group) (stock code: 755), a major integrated property developer from the PRC, announced that it has signed an agreement with AECI Limited of South Africa to acquire a property development project comprising several parcels of land and buildings - covering totally approximately 1,600 hectares - in Modderfontein, Johannesburg, South Africa for a total consideration of ZAR 1,060.98 million (equivalent to approximately HK$838.17 million). The project will include development of a complex with residential, commercial, light industries and retail facilities, and will help the Group to further realize its overseas expansion plan.
Shanghai Zendai's Johannesburg property project is located in Modderfontein, between Sandton area of Johannesburg (existing financial center) and OR Tambo International Airport - situated 8 km away from the airport and 7 km from Sandton. Johannesburg is the political, economic and cultural center of South Africa; hence the property possesses enormous development potential.
Consideration for the project amounts to approximately ZAR930.68 million (equivalent to approximately HK$735.24 million) together with VAT of approximately ZAR130.30 million (equivalent to approximately HK$102.94 million), thus a total of approximately ZAR1,060.98 million (equivalent to approximately HK$838.17 million). The transaction price was secured by bank guarantee given by Zendai to AECI on the signing date.
As security for the AECI Limited's obligations to transfer the assets to the Zendai, AECI has furnished Zendai with the performance guarantee in an amount equal to the initial guaranteed amount, subject to a maximum of ZAR547.97 million including VAT (equivalent to approximately HK$432.90 million).
Mr. Dai Zhikang, Chairman of Shanghai Zendai, said,"As a diverse property development company, aside from focusing on the Mainland market we have also been following the trend of channeling investments overseas as practiced by other Chinese enterprises, looking for property development projects of suitable scale that allow for international expansion. Our management conducted market research and valuation on the property project in Johannesburg, South Africa two years ago. After negotiating with the vendor for 18 months and conducting due diligence for six months, we finally reached an agreement. We also unanimously agreed to retain the original management team for developing and managing the project in order to effectively reduce operation, management and market risks.
"Apart from our first overseas project, which is in New Zealand, we believe that the property development project in Johannesburg, South Africa will substantially increase the Group's land reserve and aid our expansion into the South African market. This will help us to diversify and internationalize our investment portfolio, leading to more stable income for the Group."
Contact:
Strategic Financial Relations Limited
Heidi So/ Angela Ng / Miranda Xie
Tel : 2864 4826 / 2864 4855/ 2864 4862
Email : heidi.so@sprg.com.hk / angela.ng@sprg.com.hk / miranda.xie@sprg.com.hk
Topic: Press release summary
Source: Shanghai Zendai Property Limited
Sectors: Daily Finance, Daily News
https://www.acnnewswire.com
From the Asia Corporate News Network
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