Advertisement
Advertisement
China Vanke
Get more with myNEWS
A personalised news feed of stories that matter to you
Learn more
One of the pieces of empty land purchased by China Vanke. Photo: Xiaomei Chen

Vanke trading suspended for Guangdong Trust Acquisition

Core assets involve 16 land parcels in prime areas of Guangzhou covering total a gross floor area of about 2.11 million square metres

China Vanke

China Vanke confirmed on Wednesday it is buying certain assets of Guangdong International Trust Investment Corporation and has requested its shares in Hong Kong be suspended from trading, pending further details of the deal.

The country’s second largest homebuilder said on Friday it had won a public auction to buy the equity interests and creditors’ rights of the bankrupt state-owned trust company’s real estate subsidiaries for 55.1 billion yuan (US$8.1 billion).

The trusts core assets involve 16 land parcels in prime areas of Guangzhou, the largest city in southern China by population, covering a total gross floor area of about 2.11 million square metre.

Vanke plans to develop the sites into residential properties, commercial properties, hotels and offices.

The developer continued to trade on Wednesday in Shenzhen, and its shares rose 2.85 per cent to close at HK$24.54.

Guangdong International Trust is known as China’s first non-bank financial institution ever to enter bankruptcy, in 1999, as a result of the Asian financial crisis as well as the biggest bankruptcy in the nation’s history since 1949.

The 16 land parcels are its most valuable assets, but the development of some has been suspended for 20 years, while others lie undeveloped, financial news outlet Caixin reported.

“We believe the bundle of assets Vanke plans to acquire is of good quality,” global rating agency S&P said on Friday,

“However, the assets are likely to require a long digestion period... and will include a debt component which is yet to disclosed.”

Separately, Vanke said on Wednesday in the first six months, it achieved contracted sales of 277 billion yuan (US$187 billion), a 46 per cent rise year on year.

Post