A Yuexiu Real Estate Investment Trust special purpose vehicle acquired an 18-story commercial building in China's Zhejiang province, along with a shareholder loan, for 590.0 million yuan from Guangzhou Construction & Development Holdings (China) Ltd., a subsidiary of Yuexiu Property Co. Ltd.
Hangzhou Victory Business Center Tower 2 in Qianjiang New Town in Hangzhou comprises 20,131.62 square meters of office space and 2,353.21 square meters of retail area, with 17,663.58 square meters of carpark spaces. The property was worth 600.0 million yuan as at Sept. 30. The office component is almost 80% leased, while the retail space is 92.8% occupied.
Yuexiu REIT Asset Management Ltd. financed the acquisition with internal resources and the Hong Kong dollar equivalent of 364.0 million drawdown from a new bank facility signed Dec. 21 with an independent lender bank. The facility bears interest at a margin of 1.2% per year over the Hong Kong interbank offered rate and will become due 36 months following the date of the drawdown.
As of Dec. 28, US$1 was equivalent to 6.88 yuan.