19th Apr 2016 13:41
LONDON (Alliance News) - Asian Growth Properties Ltd on Tuesday said it agreed to sell properties under development in Kaifeng, Henan Province, China for HKD900 million, or about GBP81.4 million, in cash.
Asian Growth Properties said it will recognise an HKD90.0 million loss, equivalent to GBP8.1 million, from the sale.
Blackbird BB Ltd, a company incorporated in the British Virgin Islands with limited liability and owned by the purchaser's guarantor, HEC Capital Ltd, a company incorporated in the Cayman Islands with limited liability, is the buyer.
Asian Growth Properties said it has confirmed that the purchaser, the purchaser's guarantor and their ultimate beneficial owners are independent of the company and not a "related party" as defined in AIM rules.
The carrying value of the properties was HKD1.07 billion at the end of 2015, Asian Growth Properties said in a statement, equivalent to roughly GBP97.2 million.
The consolidated net liabilities of the Target Group as of the end of 2015 was HKD203.1 million, roughly GBP18.4 million, after deducting a shareholder loan. Target Group consists of New Insight, an investment holding company indirectly owned by Asian Growth Properties, which owns the land at Zheng Kai Da Road, Kaifeng, Henan Province, China and the buildings there.
Asian Growth Properties intends to use the money received from the asset sale for investment into its other development and investment projects and other potential real estate projects and as general working capital.
Asian Growth Properties said it is trading in line with its expectations.
Shares in Asian Growth Properties were up 14% at 53.00 pence on Tuesday afternoon.
By Samuel Agini; [email protected]; @samuelagini
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