Gelonghui, April 2, 丨 Jin Chaoyang Group (00878.HK) announced that through its indirect wholly-owned subsidiaries (Yirun, Peiyi and Leading Real Estate, which are the registered owners of Xiyun Tower properties), the company owns about 88.79% of the lot and can participate as a bidder in the auction to be held in accordance with the sale order. The Land Tribunal has set the reserve price at HK$2,425 million in accordance with the sale order.
The company and its subsidiaries ordered a qualified sale to participate as bidders in the auction relating to the Xiyun Tower. If the company is the successful bidder of the auction, the company will purchase the remaining units at a cost of about 11.5% of the final bid price through the auction.
Xiyun Tower is an 11-storey complex with shops on the ground floor and residences on the upper floor. It was completed in 1959. It is located on this site, with a site area of approximately 13,150 square feet.
If the successful bidder of the auction is an independent third party, the company must sell all of its rights in the Xiyun Building property to the successful bidder (if any) of the auction through the auction. Although the company will lose the opportunity to take full ownership of the lot to rebuild, a potentially very significant sale will immediately improve the Group's cash flow. Sales proceeds from potentially very significant sales will be used by the Group to finance other projects and general operating capital.