China Vanke Co., Ltd announced that Guangzhou Wanxi Real Estate Co., Ltd., a wholly-owned subsidiary of the company, won the bid for the acquisition of the 100% equity interest in Guangdong Trust Real Estate Development Corporation held by Guangdong International Trust Investment Corporation (“Guangdong International Trust”), the 100% interest of Guangdong International Trust in its Guangzhou real estate branch (“Guangzhou Real Estate Branch”) and certain creditors’ rights of Guangdong Trust Real Estate, at a public auction conducted by the Liquidation Team (as defined below) on 29 June 2017 (the “Acquisition”).
The aggregate consideration for the Acquisition is approximately RMB55.1 billion.($8.13 billion)
Guangdong International Trust was declared bankrupt by the Superior People’s Court (the “Superior People’s Court”) of Guangdong Province of the People’s Republic of China (the “PRC”) on 16 January 1999 and a liquidation team (the “Liquidation Team”) was subsequently appointed by the Superior People’s Court to be responsible for, among other things, managing the assets and liabilities of Guangdong International Trust.
The principal assets held by Guangdong Trust Real Estate and Guangzhou Real Estate Branch comprise 16 parcels of land (the “Properties”), which are primarily located in Liwan district and Yuexiu district of Guangzhou and is expected to have a total gross floor area of approximately 2,110,000 square metre. The Properties are expected to be developed into residential properties, commercial properties, hotels and offices (the “Projects”).
In view of the location of the Properties and the potential value of the Projects, the Board believes it is a valuable opportunity for the Company to enhance its land bank in Guangzhou and it is beneficial to the Company and the shareholders as a whole. The Company will discuss further with the cooperative partner, which has undertaken to invest in the Projects and will also negotiate with other potential cooperative partners on the joint development of the Projects as authorized by the Board.