Guangdong Land Holdings Ltd., through a subsidiary, could potentially purchase a residential development and another mixed-use site in Guangzhou, China, after signing a roughly 2.04 billion-yuan agreement with two associated companies.
The company's shareholders will meet June 7 to vote on whether it should go ahead with the acquisition, following the deal that was signed April 27.
The Hong Kong-listed company, through its Guangdong Land Development (Shenzhen) Ltd. subsidiary, will buy from Guangdong Yuegang Investment Development Co. Ltd. and Guangdong Yuegang Investment Property Co. Ltd. the owner of the projects, Guangdong Yuehai Property Development Co. Ltd., for about 1.20 billion yuan.
As part of the deal, the Guangdong Land subsidiary will also shoulder the repayment of the target company's outstanding loans amounting to an estimated 842.1 million yuan.
The mixed-use project held by Guangdong Yuehai is located at 43-79 Zhuguang Rd. in Guangzhou's Yuexiu district. It has a total gross floor area of approximately 119,267 square meters, with about 65,636 square meters allocated for residential use, 22,817 square meters for commercial purposes, 18,464 square meters for car-parking spaces and 12,350 square meters for public facilities.
Additionally, the 1,374-square-meter residential development in the city's Liwan district comprises 40 housing units and 20 car parking lots, with an aggregate gross floor area of roughly 5,240 square meters.
If approved, the deal will increase Guangdong Land's holdings in Guangzhou to three property projects with a combined gross floor area north of 100,000 square meters that can be offered for lease or sale, according to a filing.
As of May 17, US$1 was equivalent to 6.37 yuan.
