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China developer acquiring Spirit World

GUANGZHOU property developer China Yuanbang Property Holdings is acquiring Spirit World Holdings, one of the joint venture partners of its Aqua Lake Grand City project in Nanchang City, Hongjiaozhou for 200 million yuan (S$39 million).

On completion of the proposed acquisition, Spirit World will become an indirect wholly owned subsidiary of the group, which will in turn indirectly hold a 51 per cent stake in New Zhong Yan (Nanchang) Real Estate Development. The latter is another joint venture partner in the Aqua Lake development and holds the development site area of 193,380 square metres, valued at over 400 million yuan.

‘We have confidence in the property market of Nanchang which is growing rapidly. This acquisition will not only enable the group to enjoy more profitability from the sale of properties of the Nanchang project, but also allow the group to reap the gain on the appreciation of the underlying value of the development site,’ said China Yuanbang Property executive chairman Chen Jianfeng yesterday. ‘Furthermore, we will have more control over the cost and quality of the construction,’ he added.

The Aqua Lake Grand City is a mixed property development for the group. It is to be developed in three phases.

The group held its first pre-sales of residential units last month. This saw a strong take-up rate of about 85 per cent with an average selling price of 5,300 yuan per square metre, which is a third higher than the original target selling price of 4,000 yuan.

 

Source: Business Times 27 Nov 07

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