Zhitong Financial APP News, Manbaogang Group (01213) notice that on December 20, 2021, MBM Properties, a non-wholly owned subsidiary of the Group, entered into land purchase agreements with GGP Investments, Pivotal Fund and Redefine respectively; and Project House and Purple Fountain Properties entered into construction agreements. The land is located in Erf 258, Jupiter, Extension 28 Township Germiston, South Africa, with a total area of about 12980 square meters.
Under the above agreement, MBM Properties will acquire the land and engage Project House and Purple Fountain Properties to build and establish offices, warehouses and parking spaces on the land for the day-to-day operation of Mantech Electronics. Under the land purchase agreement, MBM Properties has to pay Yolante 16.7929 million yuan (equivalent to about HK $8.209 million). The purchase price is 1125 yuan (equivalent to about HK $550) per square meter multiplied by the unit price of the specified area. The total construction cost of the land is Rand 26.165 million (equivalent to HK $12.791 million). The price comes from Project House's tender proposal, which takes into account the estimated construction cost, the location of the site and the current market conditions.
The company believes that South Africa has great potential for continued expansion in electronic and electrical transactions, as well as huge entrepreneurial opportunities. In order to support and encourage the company to continue to develop its business in South Africa, the company decided to develop the site and build new office buildings, state-of-the-art warehouses and parking spaces on it for the day-to-day operation of Mantech Electronics. Therefore, the Board is of the view that the acquisition and construction matters will be conducive to the expansion of the Group's business of buying, selling and distributing electrical products and components in South Africa, as well as the long-term business development of the Group.