China South City sold Xian for 717 million
2022.12.18 10:27
China South City sold Xian for 717 million
Budrigannews.com – China South City Holdings Limited, a logistics and commercial development company, stated that it had reached an agreement to sell a business that holds its projects in the central city of Xian to a state-owned shareholder for 717 million dollars, or 5 billion yuan.
In a filing, the developer stated that it anticipates making a profit of HK$8 million, or $1.03 million, from the sale. The profits will be put to use by China South City Xi’an for working capital and the repayment of shareholders’ loans of 2.86 billion yuan.
China South City stated in the filing on Sunday that “the deal will be able to improve the liquidity of (China South City Xi’an), provide additional working capital to the group, and reduce the gearing ratio of the group.”
Additionally, China South City stated that the buyer represents related parties of a unit that is owned by the Shenzhen municipal government and is a component of its major shareholder, SZCDG.
There are property developments in China South City Xi’an with planned and completed gross floor areas of 760,000 square meters and 2.41 million square meters, respectively.
China South City will own 30.65% of the business following the transaction, while the buyer will own 69.35 percent.
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A Put Option has also been granted to the buyer, enabling it to sell back to China South City all or some of the shares in the Xian business in the future.
