China Goldjoy Acquires USD42m Hefei Property

The properties are located at Hefei City, Anhui Province, and a portion of Phase 2 of the Baonengcheng project.

Chinese investment holding firm China Goldjoy Group Ltd (China Goldjoy) has announced that it has agreed to pay Rmb315 million (USD42 million) to acquire properties in Hefei City, China.

The properties are located at Hefei City, Anhui Province, and a portion of Phase 2 of the Baonengcheng project. Binghu district, which Baonengcheng is located, is one of the most popular districts in the Hefei City’s property market.

The Baonengcheng project is adjacent to the heart of provincial capital and the offices of the back-office operations of the international financial services providers with favorable geographical location.

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The properties are buildings No. 3 and No. 8 (excluding floors 1-2, which are intended for commercial use). Currently, construction of the properties has not been completed, but the properties are qualified for pre-sales.

Building No. 3 has a gross floor area of 14,288.04 square meters with 39 floors on the ground, and building No. 8 has a gross floor area of 17,616.90 square meters with 49 floors on the ground (floor 3-49 for residential use).

The properties comprise 344 units in total. By comparing the selling price of the properties in the same area, the total amount of acquisition is very reasonable. It is expected to bring substantial return on investment to China Goldjoy.

The firm is confident that the acquisition will contribute positively to the group by bringing in additional source of income from such investment.

China Goldjoy Actively Implementing Development Strategy

China Goldjoy has been actively implementing a diversified development strategy in recent years. Investment, development and operation of quality property is set to become one of the group’s core businesses in the future.

The group also plans to continue to look for property investment opportunities in focus areas and regions with development potential so as to capture the opportunities arising from the flourishing real estate market.

Hefei City, where the China Goldjoy’s target properties are located, has also shown rapid economic growth and strong development potential in recent years with the rise in the region’s property prices ranking among the top in the country.

The announcement mentioned that as one of the applicable percentage ratios (as defined under the Listing Rules) in respect of the acquisition is more than 5% but less than 25%, the acquisition constitutes a discloseable and connected transaction of the group, and is subject to the reporting, announcement, circular and independent shareholders’ approval requirements under Chapter 14A of the Listing Rules.

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Related shareholders will abstain from voting at the EGM. An independent board committee will be formed to advise the independent shareholders on the sale and purchase agreement and the transactions contemplated thereunder. The independent financial adviser will be appointed to advise the independent board committee and the independent shareholders in this regard.

“As the property market shows a good momentum of development, the Group considers this acquisition as a good investment opportunity and believe that China Goldjoy will benefit from the anticipated growth in value of the properties,” Feng Huiming, Executive Director and Senior Vice President of China Goldjoy, said,

China Goldjoy Group Limited is principally engaged in the development of a range of high technology products; trading and providing services with respect to automation-related equipment; securities investment; and strategic investment and development in technologies mainly related to biometric security, high-speed wireless data transmission and communications. – BusinessNewsAsia.com