Hong Kong, SAR Peoples’ Republic of China, 17 September, 2014
Euro Asia Premier Real Estate Company Limited (ISIN: VGG3223A1057) announces today that the Company has entered into an agreement for the purchase of a 100% equity interest in Wuhan Yin He Real Estate Co. Ltd. (“WYH”) from a group of investors in September 2014. The acquisition will be financed through the issuance of convertible notes, borrowing and the Company’s internal cash flow. The consideration for the acquisition will be in excess of RMB¥ 500 million (approx. Euro 63 m). WYH has developed a mixed residential and retail complex of approximately 105,488 sqm in Wuhan, the capital city of Hubei Province. The project has been completed fully, and is ready to go to market immediately. Completion of the transaction is intended by October 31, 2014 and is subject to Euro Asia arranging the required financing.
Euro Asia will assemble a marketing team to handle the sales of the project. Selling efforts shall commence immediately and are expected to complete within 18 months. 46,450 sqm residential space is available for sale immediately. An additional 25,502 sqm of residential space is to be made available after obtaining the sales permit, which is expected to be received within the coming three months. The retail space component of 19,249 sqm is also planned for immediate sale. Targeted gross selling price of RMB¥ 15,000 to 18,000 per sqm (Euro 1,881 to 2,257) for residential and RMB¥ 30,000 to 40,000 per sqm (Euro 3,762 to 5,016) for retail is expected to generate over RMB¥ 1,65 billion (Euro 207 m). A remainder of 13,311 sqm is used for parking and utility space, and is currently not for sale, but will be managed internally.
Wuhan is the capital of Hubei province. With a population of 10.2 million, it is the largest city in Central China. Situated at the crossroads between Beijing, Shanghai and Guangzhou – The distance to each mega city being more or less equal – Wuhan is a transportation hub for air, railway and ferry traffic. The Yangtse River (Chang Jiang) and the Han River, two of the world’s longest rivers, pass through the city. Wuhan is an important center for economy, trade, finance, transportation, information technology, and education, and one of the dynamic cities in China in terms of domestic trading activity.
* Conversion rate: RMB 1 = Euro 0.126
Schwarz Financial Communication
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About Euro Asia
Euro Asia is a BVI registered company, active in demand driven development of real estate projects in the Shandong area of the People’s Republic of China. The Company operates locally through its subsidiaries. By utilizing its strong local network to banks, political decision makers, land owners and other developers, the Company intends to grow its position in the Shandong Province prior to moving into other regions.
For more information, please visit www.eu-asia.net