Greentown China (HKG:3900) announced that it agreed to sell 100% of the issued share capital of Hangzhou Greentown Hesheng Investment Company (Greentown Hesheng) to SOHO China (HKG:0410) for RMB1.04 billion.

Greentown China expects RMB115.33 million gain from the disposal and intends to use the net proceeds from the disposal as general working capital.

SOHO China also agreed to acquire the entire equity interest of Shanghai Zendai Wudaokou Real Estate Development Co., Ltd. (Zendai Wudaokou) from Shanghai Zendai Property (HKG:0755)

The total consideration payable by SOHO China for the acquisitions is RMB4 billion.

Zendai Wudaokou and Greentown Hesheng own 35% and 10% equity interest in Shanghai Haizhimen Property Investment Management Co. Ltd. (Haizhimen) respectively. It is contemplated that before the completion of the equity transfer, Zendai Wudaokou will be, directly and indirectly, interested in 40% equity interest in Haizhimen and upon the completion, SOHO China will indirectly own 50% equity interest in Haizhimen through Zendai Wudaokou and Greentown Hesheng.

Upon completion of a project company transfer agreement entered into between Haizhimen and Shanghai Zendai Property, Haizhimen will become the sole owner of the project company, Shanghai Zendai Bund International Finance Services Centre Real Estate Company Limited, which owns the land use rights of the Bund 8-1 Land, and SOHO China will be indirectly interested in 50% equity interest in the project company and the Bund 8-1 Land.

The Bund 8-1 Land is a parcel of land located in Lots 574 and 578 of Xiaodongmen Jiedao, Huangpu District, Shanghai with a site area of 45,472 sqm for mixed office, retail, financial, art and culture uses. The project has a total planned gross floor area of 422,825 sqm, including 30,000 sqm of hotel space. The rights to the 30,000 sqm of hotel space and 6,000 sqm of underground auxiliary facilities have already been sold to a third party.

Source:chinesestock.org