According to the Zhitong Finance App, Jin Chaoyang Group (00878) announced that the company owns about 88.79% of the Xiyun Building through its indirect wholly-owned subsidiaries (Yirun, Peiyi and Leading Real Estate, which are registered owners of Xiyun Tower properties).
The company may participate as a bidder in further auctions to be held at this location. If the company is a successful bidder in further auctions, the company will acquire the remaining units through further auctions at a cost of about 11.5% of the final bid price.
If the successful bidder of the further auction is an independent third party, the company will have to sell all of its rights in the Xiyun Tower property to the successful bidder in the further auction through the further auction. According to the Land Tribunal's assessed fair value for the Xiyun Tower property and the remaining units (that is, the value of current use), the company will receive approximately 88.5% of the final bid price.
The announcement said that although the company will lose the opportunity to obtain full ownership of the lot for redevelopment, a sale that may be very significant 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.