group diversifies portfolio to include Guangdong province

HONG KONG: China's green technology real estate developer and operator Modern Land Ltd, together with its subsidiaries announced the joint development of a property project with Yango Group Ltd in Guangzhou on Sept 15.

According to statement, Modern Land and Yango Group entered into the share transfer agreement whereby Modern Land agreed to acquire 5,100 shares of the target company from Yango Group at the consideration of HK$1,828,623,141(approximately RM985,251,725). Upon completion, the target company will be held by Modern Land and Yango Group as to 51% and 49%.

The target company is an investment holding company incorporated in Hong Kong. It was 100% owned by Yango Group before the completion. It owns 100% of the issued share capital of Smooth Ever Ltd. The ownage of this company indirectly allows controlling interest of Modern Land over Honkwok Hengsheng Ltd through subsidiaries.

Honkwok Hengsheng is a corporation established in the People’s Republic of China (PRC) and is the registered and beneficial owner of the land. This company is principally engaged in  property development. The land is situated in a prime location in Tianhe District, Guangzhou. It comprises a total site area of approximately 95,382 sq m and a total gross floor area of approximately 280,000 sq m for residential, commercial and other uses.

After the conversion of acquisition, the land cost per sq m of gross floor area for the land is approximately RMB15,000 (approximately RM9,529). According to the valuation report prepared by an independent property valuer, the market value of the land as at 28 February 2017 was approximately RMB5bil  (approximately RM3.18bil). The development project of the land will be branded as "Yango Group MOMA.”