Weifang, People’s Republic of China, 30 November 2010
Euro Asia Premier Real Estate Company Limited (ISIN: VGG3223A1057) today announced the Company has decided to sell its property the Xin Yuan Ju Hotel, or German Hotel, as well as the lands the Company holds adjacent to the hotel.
The Company has entered into a non-binding agreement with a third party for the purchase. Buyer’s due diligence is expected to be completed before 31st December, with a binding agreement entered into by March 2011 and final completion of the deal no later than May 2011. Under the non-binding terms of the agreement, the buyer will pay RMB 72 million (approx. Euro 8.16 million) for the properties, generating a pre-tax profit of RMB 8 million (approx. Euro 0.91 million) to Euro Asia.
Patrick Chan, Vice Chairman for Euro Asia stated, “We have come to the decision to sell the German Hotel in order to bring cash flow generation forward. We have identified a number of good additional opportunities that the funds raised through the sale will allow us to pursue. Real estate is performing well in the Weifang area. The move signifies a shift in our strategy. We will become more aggressive in pursuing development opportunities in the market, as well as developing our land bank in order to accelerate ROI. This transaction will have a positive effect on our cash flow to accelerate development through to 2013.
On 8 December, Euro Asia will present at the Capital Markets Conference in Munich.