Shui On Land Ltd.,through subsidiaries, sealed a deal to sell two commercial projects in Hubei, China,to CITIC Pacific China Holdings Ltd. for an aggregate price of around 4.50 billionChinese yuan.
Shui On Development (Holding) Ltd. and Wuhan Shui On Tiandi PropertyDevelopment Co. Ltd. are the sellers, according to a filing.
The framework agreement, subject to certain conditions, coversthe divestment of a "super high-rise tower" for office and hotel purposes.It has a salable gross floor area of about 177,116.6 square meters. Work on theproperty, which carries a roughly 3.37 billion-yuan price tag, has not yet started.
Wuhan Shui On will also apply to change the planning permissionfor the hotel portion of the tower to office use, pursuant to the agreement.
Meanwhile, the other property for sale has a gross floor areaof about 55,053.10 square meters and has been completed. The podium of the officetower is still under construction, however, and the whole property will be acquiredfor 1.13 billion yuan.
The agreement also includes an option for CITIC to buy the undergroundparking areas of the two properties for a total of 152.8 million yuan.
As of May 3, US$1 was equivalentto 6.49 Chinese yuan.