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| Proactively Expanding the Strategic Business Layout, Enhancing Competitiveness in China's Real Estate Market |
HONG KONG, Nov 16, 2017 - (ACN Newswire) - Sansheng Holdings (Group) Co. Ltd. ("Sansheng Holdings" or the "Company", and together with its subsidiaries, the "Group", Stock code: 2183.HK), is pleased to announce that the JV Agreement between the subsidiary of the Group and the JV Partner - Sansheng Investment, the agreements of Pingtan and Jinan Acquisitions were duly passed at the EGM held today by way of poll.
The Formation of a Joint Venture Company
On July 7, 2017, the Group and Sansheng Investment entered into the JV Agreement. Two parties agreed to set up a JV company, which will be principally engaged in investment of property development projects in the PRC. The registered capital of the JV Company is to be RMB 2.00billion, which shall be contributed as to 55% (equivalent to HKD1.32billion) by the subsidiary of the group and as to 45% (equivalent to HKD1.80billion) by the JV Partner.
The JV Company will participate in land auctions, acquire potential assets and equity interest in suitable property development projects from independent third parties in the PRC, and engage in property development projects after land acquisitions. The JV Formation will provide a platform for the Company and the JV Partner to consolidate their resources, capabilities and industry expertise in developing the property development business in the PRC. Upon formation, the JV Company will participate in residential and commercial property development projects in Jinan, Chengdu, Fujian and their surroundings with strong economic vitality.
The Pingtan Acquisition
On 16 August 2017, Sansheng Land Development Limited, a wholly owned subsdiary of the Group, entered into the Pingtan Agreement to acquire the Pingtan Sale Project for the consideration of HK$642.80million.
The project is planned to develop in 3 phases, including the construction of villas, high-rise residential towers with 26 floors, car park lots, SOHO flats and ground-floor shops. It is expected that the three phases will be developed over a span of three years.
Pingtan belongs to the key area of Fujian Free Trade Area. The Chinese government aims to develop Pingtan into a cooperation area between the Mainland and Taiwan. The Company expects that the above development will attract an influx of investors and tourists to bring in new sources for investment or vacation purposes. The Board is optimistic about the prospects of Pingtan property market.
The Jinan Acquisition
On 23 August 2017, a wholly-owned subsidiary of the Group entered into the Jinan Agreement to acquire the Jinan Sale Project for the consideration of HK$101.10 million.
The project will be developed into semi-detached villas, condominiums, and high-rise residential towers with 18 or 26 storeys, basement car park lots, activity rooms, and underground units. The whole development is expected to comprise four phases to be developed over a span of three years.
The board of the Company believes this project will bring about an increase in the land bank for the company and expects a positive outlook for the local residential property market.
Mr. Lin Rongbin, Chairman of Sansheng Holdings (Group) Co. Ltd., said: "The company has made two acquisitions in strategy" Focusing on Fuzhou market, expanding throughout the nation and boosting the interaction between domestic and overseas markets", believing that it will enhance the Group's overall competitiveness, thereby delivering better returns to the shareholders."
About Sansheng Holdings (Group) Co. Ltd.
Sansheng Holdings (Group) Co. Ltd., or ("Sansheng Holdings" or the "Company", Stock code: 2183), formerly known as "Lifestyle Properties", was officially renamed as Sansheng Holdings (Group) Co. Ltd. Sansheng Holdings is principally engaged in property development and property investment. The company will continue holding the investment properties for capital appreciation, meanwhile actively seeking commercial opportunities to lease out the investment properties or carry out cooperation so as to contribute income and cash flow to the company as soon as possible. The company will pay close attention to the changes in policies, economic environment and property market in mainland China, Hong Kong and overseas, actively vitalize the Group's assets to obtain new financial resources by leveraging on the extensive experience and expertise of the company's shareholders in real estate sector, and participate in land auction or acquire quality land projects so as to achieve rapid growth in revenue and profitability.
Topic: Press release summary
Source: Sansheng Holdings (Group) Co. Ltd
Sectors: Daily Finance, Daily News
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