Glonghui December 15 | Junan Holdings (01559.HK) announced that on December 15, 2023, the seller Metrocity Properties Group, Inc (an indirect non-wholly owned subsidiary of the company) and the buyer, Robinsons Land Corporation, entered into this agreement on the sale of the property. According to the agreement, the cost will be approximately HK$130 million.
“The property” means the land and hotel building. The land is located at 669 Padrevola Avenue, Kalongya, District 072, Emita District, Manila, Philippines. The land has a total land area of 3,312 square meters. It is freehold land for commercial and residential development purposes.
The directors believe that the Philippine property market is facing multiple challenges and uncertainties due to rising interest rates and the global economic slowdown. In addition (1) no financing plan has been agreed with the lender; and (2) as described above, the deterioration in the Group's financial performance limits the Group from investing significant resources to advance development projects; therefore, development projects (i) may pose risks to the Group and (ii) will restrict the Group from further developing its construction and other business capabilities. In view of this, the board of directors believes that it is appropriate to monetize the investment in the property and concentrate the Group's resources on its construction and other businesses.