Hsin Chong Group Holdings Limited (“Hsin Chong”) is pleased to announce that it has entered into a framework agreement with Beijing Enterprises City Development Limited (”BECD”) to jointly develop its property projects in the Mainland. BECD is an indirect associated company of Beijing Enterprises Group Holdings Limited (“BEHL”).
According to the framework agreement, BECD has agreed to hold 51% interest in the companies holding Hsin Chong’s property projects in the Mainland based on valuation of the companies. BECD will procure financing to improve financial situation of the project companies which aim to complete all property projects within 5-8 years. The Group will get not less than RMB 7.5 billion within 3 years by various available means. The total assets of the companies involved amount to RMB26 billion, which own property projects (developed and under construction projects) with total GFA of approximately 5 million sqm in the Mainland. The projects include New Times Plaza, Beijing; Xiyan Computer City in Guangzhou, La Viva in Foshan, La Viva in Tieling, commercial development projects in Tai’an and Tianjin.
“We are very pleased to enter into the framework agreement with BECD to jointly develop our property projects in the Mainland. The corporation will provide excellent conditions and opportunities to re-vitalise the projects. The investment of BECD will bring in over RMB 7.5 billion in the next few years which will greatly improve the Group’s financial situation and for pursue of its business strategies. BECDis a mixed ownership venture of BEHL. Leveraging on their vast experience, resource, power of integration and excellent connection with financial institutions, we expect to achieve a significant synergy. The Group can also ride on the platform of BEHL, a state-owned enterprise which has experience in green energy, urban infrastructure, urban innovation and integrated operations, with sizable investment platform of infrastructure and utilities and integrated city operations.” said by Mr Lin Zhuo-yan, Non-Executive Chairman and Non-Executive Director of Hsin Chong.
For details, please refer to the announcement issued by the Group by clicking the link below: