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HONG KONG, Aug 16, 2009 - (ACN Newswire) - Kowloon Development Company Limited ("Kowloon Development" or "the Group"; stock code: 34) announced that the Group entered into an agreement with Polytec Holdings International Limited, the parent company of the Group. Kowloon Development will acquire the two property development projects from the parent company at a discount of 20%-37%. The projects are located in Ming Yuen Western Street, North Point of Hong Kong and Hun Nan Xin District of Shenyang.
The aggregate consideration of the acquisition was HK$856,506,000, of which HK$90,000,000 will be paid in cash upon completion and the balance will be settled in full within a year after the completion of the acquisition. The consideration for the property project of Ming Yuen Western Street, North Point represents a purchase price of approximately HK$41,319 per m2, a 20.1% discount on its market value; while that of the property project located in Hun Nan Xin District of Shenyang represents a purchase price of approximately HK$1,073 per m2, a 37.2% discount on its market value.
Mr Or Wai Sheun, Chairman of Kowloon Development commented on the acquisition and said, "Given the gradual economy recovery in Hong Kong and the Mainland China and the outstanding pre-sale results of new residential properties, the demand of premier new units remains. Our Group have confidence on the business development, as well as the promising future of the property markets in Hong Kong and the Mainland China."
The property located in Nos. 24-32 Ming Yuen Western Street, North Point is named 'Mount East'. It will be developed into a composite residential building. Bond Star Development Limited, the developer of this project, will become the wholly-owned subsidiary of Kowloon Development upon completion of acquisition. With a site area of approximately 706 m2 , and a total GFA of approximately 5,706 m2, "Mount East" is a 36-storey building with clubhouse and other facilities, in which 25 storeys are residential units. Construction is anticipated to complete on or before 30 June 2011.
The site area of another property project to be acquired that located in Hun Nan Xin District of Shenyang City is approximately 171,339 m2. It is for composite residential and commercial use, with a total planned GFA of approximately 578,561 m2. Foundation work for the first phase has commenced.
Mr Or concluded, "Our Group plans to develop 'Mount East' of North Point into a multi-storey high-end residential building with retail and recreational facilities, while the Shenyang property as a residential, apartment, commercial, hotel and office complex. We are optimistic about the future property markets in Hong Kong and the Mainland China and expect these two properties will be well-received by the market. The acquisition not only enables us to expand the portfolio of development projects and increases source of revenue, but also enhances our future profitability for generating fruitful investment returns to our shareholders."
For the acquisition details, please visit the website of Kowloon Development.
Contact:
Quam IR
Ms Anita Wan
Tel: +852-2217-2883
E-mail: anita.wan@quamgroup.com
Ms Sharon Au
Tel: +852-2217-2680
E-mail: sharon.au@quamgroup.com
Topic: Corporate Announcement
Source: Kowloon Development Company
https://www.acnnewswire.com
From the Asia Corporate News Network
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