Shui On Land to fund existing projects with Shanghai Xing Qiao disposal
Shui On Land announced it agreed to sell a 99 per cent interest in Shanghai Xing Qiao, which owns a 99 per cent stake in the Taipingqiao development site, for more than 3.32 billion yuan (HK$4.21 billion).
Shui On Land has sold its majority interest in the Taipingqiao commercial development to China Life Trustees to finance existing projects.
The company is expected to generate a gain of 192 million yuan from the disposal.
Shanghai Xintiandi, a subsidiary of Shui On Land, will provide management services such as administration services, leasing and financial management services to the project.
They will receive a monthly management fee equivalent to 0.03 per cent of the fair market value of the site.
The management fee is estimated to be about 15 million for 2014.
According to the sale agreement, Shui On's subsidiary, Taipingqiao Holdings, has the right to buy back the shares and the inter-company loan within seven years after the transaction is completed.