New | New World China Land sells three projects in China to Evergrande for HK$16.36 billion
New World China Land (NWCL) has agreed to sell three property projects in China’s second and third-tier cities to Evergrande Real Estate for HK$16.36 billion.
The sale will allow NWCL to reap a net gain of HK$6.57 billion, the NWCL said in a filing to the Hong Kong stock exchange on Wednesday.
“The disposals signifies the group’s strategy of optimising its project development and investment portfolio by scaling down investment in second and third-tier cities and projects with lower gross profit margin and by focusing more resources in 1st-tier and 1.5-tier cities and mid-sized property projects, “ said New World China Land managing director Henry Cheng Kar-shun in a statement.
It is the second acquisition by Evergrande Real Estate Group within three weeks after it agreed to buy Mass Mutual Tower, a prime office block at the corner of Gloucester and Jaffe roads in Wan Chai, from Chinese Estates Holdings for HK$12.5 billion.
NWCL entered into an agreement with Evergrande to sell its property projects in Wuhan, Hubei province, Huiyang, Guangdong, and Haikou, Hainan Island.
The principal business of Wuhan New World is the development of a massive low-cost housing, Wuhan Changqing Garden, Wuhan Changqing Nanyuan and Wuhan Xinhua Garden in Hankou, Wuhan. The development will comprise of 753,273 square metres for residential development and 418,419 sq metres for commercial, retail and ancillary facilities.