Weifang, People’s Republic of China, 14 November, 2011
Euro Asia Premier Real Estate Company Limited (JT9; ISIN: VGG3223A1057) today announced that all resolutions put to the Extraordinary Shareholders Meeting of 11 November, 2011, were unanimously passed by the attendees.
Disposition of Assets
On 13 September, 2011, the company announced the proposed disposal of a number of assets in order to generate the initial cash required for its planned project at Jiulongjian as well as provide the funds required to execute its forward strategy., The table below provides an overview of which disposals Management proposed to the EGM:
|
Property |
Book Value |
Appraisal Value |
Sales Proceeds 2011 |
|
Euro Asia Apartment Building |
|
|
RMB ¥5M in addition to |
|
Qing Zhou Apartments |
|
|
RMB ¥5M premium over land value |
|
Estate of Shengpaihua |
RMB ¥33M |
RMB ¥33M |
Combined sale to SNI at appraisal value of RMB ¥129M |
|
Yunhu Holiday Hotel |
RMB ¥61M |
RMB ¥61M |
|
|
New Jianye Building |
RMB ¥35M |
RMB ¥35M |
|
|
Total Proceeds |
|
|
RMB ¥139M |
Additional funding
Based on its strong asset mix and financial strength, the Company has been able to obtaine a two year syndicated term loan of RMB ¥170M (approx. €19.7 million), to be used for the planned projects at the Cloud Lake Training and Exhibition Center and Jiulongjian Country Park, thereby bringing total cash available to RMB ¥309 million (approx. €35.8 million).
Cloud Lake Training and Exhibition Centre
The original transaction proposed in relation to the Cloud Lake Training and Exhibition Centre was to sell the project, which would allow the company to record a pre-tax gain of RMB ¥ 96 million (approx. €11.1 million), while the Company would retain the right to an earn-in on this development in exchange for a cash payment by December 31, 2011.
Due to the strong cash position of the Company, however, the board of directors has decided against the sale. Instead, Euro Asia will assume full operational and development control of the project and intends to invest a further RMB ¥ 50 million (approx. €5.8 million) towards completion of the project by mid 2012. Euro Asia anticipates a significant gain from the development upon completion.
Jiulongjian Country Park Development
The board has approved the preliminary design and development plan as outlined in the 13 September, 2011 announcement. The Company will announce the development plan as and when appropriate.
Board Appointment and Resignation
The board of directors has accepted the resignations of Messrs Huang Jing Wen and Sun Xiao Jun as directors and has appointed Messrs Cong Yu and Guo Han Wei as their replacements. Both Mr. Cong and Guo have extensive experience in project finance and real estate developments. The board of directors welcomes their appointment and looks forward to their contribution.
Looking Forward
In view of the significant development plan in place and the company’s strong financial position, Euro Asia intends to make further acquisitions, both in the Weifang area and in other regions of China to enhance our market position. As announced earlier, Euro Asia will initiate filing for Prime Standard of Deuscthe Boerse in 2012.
* 1 Euro= RMB 8.6407 as at November 11, 2011
About Euro Asia
Euro Asia is a BVI registered company, active in real estate development in the Shandong area of the People’s Republic of China. The Company operates locally through its subsidiaries, jointly owned with SNI, a leading local development company. Generating leasing revenues from a number of commercial properties, the Company has a number of other projects under development. 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 region prior to moving into other prefecture-level cities.
Contact:
Schwarz Financial Communication
Frank Schwarz
Tel: +49 611 1745 398 11
Schwarz@schwarzfinancial.com