Gelonghui, May 13 | China Aoyuan (03883.HK) announced that on May 13, 2024, after signing a letter of intent, the seller Aoyuan Property Holdings (Canada) Ltd (a wholly-owned subsidiary of the company) entered into the agreement with the buyer Winnet Capital Ltd. According to this, the seller conditionally agreed to sell and the buyer conditionally agreed to buy all of the shares in the target company Ontario Aoyuan Property Limited The total cost of issuing shares was $68 million.
The target company is a limited company incorporated under the laws of Ontario, Canada. It is mainly engaged in investment holdings, and its main assets are M2M projects. As of the date of this announcement, it is a wholly-owned subsidiary of the Company. The M2M project is located in Toronto, Ontario. The project is divided into three phases of development. The first phase of the M2M project and the second phase of the M2M project each include two multi-storey towers and a shared multi-storey platform (including retail and commercial space; the second phase of the M2M project also includes community entertainment facilities). The third phase of the M2M project has been approved to build a multi-storey mixed-use building.
It is in the Group's interest to reduce the investment commitments required for real estate development in Ontario, Canada. The sale will quickly ease the Group's ongoing financial pressure from the first phase to completion of the M2M project and provide liquidity for the Group's broader financial needs. After the sale, the buyer will be responsible for taking over the first phase of the M2M project, which is in the final development stage, and manages the pre-sale unit's transaction, sales surplus inventory, management defects, and post-acquisition warranty.