In two separate realty business developments in Singapore, a unit of China Yuanbang Property Holdings is disposing its 25 per cent stake in Wanyuan Yuanbang Resort Development, while Oxley Holdings Ltd agreed to sell its property in Japan worth $60 million.
China Yuanbang unit to sell 25% stake in Wanyuan Yuanbang Resort Development
Guangdong Yuanbang Real Estate Development, a subsidiary of China Yuanbang Property Holdings, aims to raise up to $8.14 million (RMB37.5 million) from the sale of its 25 per cent stake in Wanyuan Yuanbang Resort Development Co to Wanyuan City Qinba Electronic Commerce Co.
The agreement will take effect upon the payment of RMB27 million. The deal is based on a sale-and-purchase agreement entered into Guangdong Yuanbang, Qinba Electronic, and Guangzhou City Po Xing Decoration Design Co.
“The proposed disposal will enable the company to bring in the purchaser as a strategic partner on the project,” China Yuanbang said in its statement.
The company is optimistic it can leverage on Wanyuan City Qinba’s experience in the tourism development indstry, networks an resources in the Wanyuan area for the benefit of Wanyuan Yuanbang Resort.
Guangdong Yuanbang will realise an estimated net gain of approximately RMB30.15 million from the proposed disposal. The company intends to use the sales proceeds as working capital.
At the signing date, Wanyuan Yuanbang holds 100 per cent of the shareholding interest in the companies incorporated in the PRC, such as Wanyuan Yuanbang Property Development Co Ltd, Wanyuan Dabashan Tourism Co Ltd, Wanyuan Mingyue Bashan Hotel Management Co Ltd, Wanyuan Yuanbang Property Management Co Ltd, and Wanyuan Yuanbang Modern Agriculture Development Co Ltd.
Wanyuan Yuanbang Resort Group’s business comprises the development of the Batai Mountain Project, which involves the development of a plot of land with an area of approximately 120 sq km located in the vicinity of the Batai Mountain National Park and Longtan River Scenic area. It is the group’s first tourism property project since 2012 which includes residential, villa and commercial units under development.
Yuanbang’s last price shares increased 3.64 per cent higher or 28.5 cents.
Oxley okays sale of $60m Japan property
Oxley Holdings Limited Monday disclosed it accepted an unsolicited offer to sell its Japan-based property the Chiba Port Square pegged at $60 million.
Oxley entered into a memorandum of understanding (MoU) last December 25 with Greenland Hong Kong Investment Group, and Japanese tax-free store chain operator LAOX Co Ltd, to sell its interests in Godo Kaisha Oxley Chiba (GKOC) which holds the beneficiary interest in Chiba Port Square.
The MoU includes the loan granted by Oxley to GKOC. The property being sold is located at 113-5 Tonyacho, Chuo-ku, Chiba Prefecture in Japan.
The buying price of $60 million includes consumption tax, provided that payment be made in Japanese yen. The sale price was negotiated based on the prevailing market price of properties surrounding the property.
All parties are likely to enter into a definitive sale agreement not later than January 15, 2016.
“The sale is expected to have a positive impact on the earnings per share and net tangible assets per share of the cmppany for the current financial year ending June 30, 2016,” Qxley noted.
Oxley’s shares price increased 1.14 per cent or SGD0.005 to close at SGD0.445.