Whole ownership of the project can maximize returns and enhance financial performance
HONG KONG, June 2, 2016 /PRNewswire/ — Joy City Property Limited ("Joy City Property" or the "Company", HKEx Code: 0207) is pleased to announce that its resolution to acquire the remaining 35% equity interest in a commercial property project in Andingmen, Beijing (Andingmen Project) for a cash consideration of RMB533.13 million (equivalent to approximately HK$637.340 million) was passed by a majority (over 88%) of votes for it in its extraordinary general meeting (EGM) held on the morning of 2 June 2016. The approved acquisition will mean the Company’s whole ownership of the Andingmen Project, which will allow the Company to maximize the returns from the project and to generate stable and sustainable income.
The commercial property project is located in the prime area adjacent to the Second Ring Road in Dongcheng District of Beijing, and is close to the entrance of Andingmen station on line No. 2 of the Beijing Subway. The project is at the preliminary stage of construction and is expected to complete construction at the end of June 2018.
On 26 April 2016, Xidan Joy City entered into an equity transfer agreement with China National Native Produce and Animal By-Products Import & Export Corporation, a wholly-owned subsidiary of COFCO Corporation, to acquire the remaining 35% equity interest in Beijing Kunting Assets Management Co., Ltd. The acquired company is engaged in the management and development of a commercial property project in Andingmen, Beijing.
Mr. Zhou Zheng, Vice President of COFCO and Chairman and General Manager of Joy City Property Limited, said: "We are glad that the resolution was passed by a high number of votes for it in the EGM. The project enjoys a strategic location and has enormous potential for development. Higher financial returns are expected from the project after it is completed. The acquisition of the equity stake will allow the Group full control and flexibility in the construction and development of the commercial property project at Andingmen. This will enhance the Group’s capability of strategic expansion and rapid development in the future and raise financial returns."
About Joy City Property Limited
Joy City Property is a commercial property listing company under COFCO Corporation, business of which covering commercial property, residential property, hotel, tourism property and regional comprehensive development. With the enterprise commission of "providing premium landscaping living environment and high quality service, leading a modern and fashion life style, and gradually became a brand property leader with sustainable development capability in China", the Company successfully built an urban complex under the brand of Joy City with the principle concept of " juvenility, fashion, modern and taste", and developed various products, including the top-level scenery series integrated with excellent natural resources and buildings, international living community series gathering international life styles and Chinese spirit, urban boutique resident series facing to city elites, top-level high-end hotels with international influence, such as MGM Grand Sanya, Regis Sanya, Beijing W Hotel, and the National Tourist Holiday Resort in Yalong gulf, Sanya with the reputation of "Oriental Hawaii", which formed a gorgeous property territory with rich formats, perfected product categories and balanced capital structure.
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