Sunac China (01918) announced that the Chongqing University City project (that is, the target project) is the group and partner Xiangyu, Chongqing...
According to Zhitong Finance App, Sunac China (01918) announced that the Chongqing University City project (that is, the target project) is a project jointly developed by the Group and its partner Chongqing Xiangyu Real Estate Co., Ltd., and the target project company, Xiang Fusion (Chongqing) Real Estate Co., Ltd., holds 51% and 49% of the rights of Sunac and its partners, respectively. In order to resolve the Group's debt issues related to the target project and capital investment for the subsequent development and construction of the target project, Sunac (Chongqing Sunac Real Estate Co., Ltd. and Hainan Baochuang Investment Co., Ltd.), the partner party and their related parties, China Aviation Trust (China Aviation Trust Co., Ltd. and Zhaoqing Yixin Enterprise Management Co., Ltd.), the partnership company Chongqing Qi Xinzecheng Enterprise Management Partnership (Limited Partnership) and the target project company signed an agreement on April 7, 2024. Based on this, the partner and its related parties finally achieved the acquisition of 51% of the target project company through the transaction arrangement described in the agreement The total transaction cost of equity and related claims was RMB 540 million.
Immediately after the sale is completed, the Group will no longer have any interest in the target project company, and the target project company will no longer be an associated company of the company.
According to reports, the target projects are located in the high-tech zone of Chongqing, China. They are all residential and commercial properties for sale, with a total construction area of about 175,000 square meters. Currently under development and construction, none of them have yet been sold.
The announcement stated that development and construction of the target project has not yet been completed, and the sale matters will help resolve the Group's debt issues related to the target project and the investment of capital for subsequent development and construction of the target project.