Country Garden, New News
Country Garden introduced partners for one of the company’s projects.
On the evening of March 24th, Country Garden announced that Guangzhou Xingchengsi, an indirect subsidiary of the company, had entered into a cooperation agreement with Guangdong Zhongwei and the project company. Accordingly, Guangzhou Xingchengsi and Guangdong Zhongwei agreed to jointly build and develop White Swan Pond International Financial Center on the property in Guangzhou through the project company for sale.
The project company refers to Guangzhou Jinsi Real Estate Development Co., Ltd., a wholly-owned subsidiary of Guangzhou Xingchengsi. Guangzhou Property refers to land AF020106 located in the core area of White Swan Pond Business District, Liwan District, Guangzhou, with a site area of 13,968 square meters, a plot ratio of 15 and a floor area of 209,520 square meters, and the land is designated for commercial and enterprise purposes.
According to the announcement, the project company acquired Guangzhou property through open market bidding and auction in 2017 and acquired the land use right of Guangzhou property in 2018. It is planned to build a 64-storey high-rise commercial building with a 5-storey basement on the property in Guangzhou.
According to the appraisal report issued by Guangdong Tongde Real Estate Land Assets Appraisal and Planning Surveying and Mapping Co., Ltd. dated March 21, 2024, as of February 29, 2024, the market value of land use right of Guangzhou property was about 3.122 billion yuan.
In addition, as of the date of announcement, the certificates and approvals required for the construction and development of the building on the property in Guangzhou have been obtained. However, the construction of Guangzhou property has been suspended, and only the underground continuous wall and three internal supports have been basically completed, while excavation works are under way.
According to the cooperation agreement, Guangzhou Xingchengsi is regarded as having provided 3.1 billion yuan to the project company, while Guangdong Zhongwei agreed to provide further funds for the project totaling about 2.8 billion yuan. It is expected that the construction of the basement floor of the building will be completed in 2025, and the capping and project completion will be in 2026 and 2027 respectively.
In addition, Guangzhou Xingchengsi and Guangdong Zhongwei also reached a supplementary agreement on the same day, which made a supplementary agreement on the potential impact of mortgage on the performance of the cooperation agreement.
Country Garden explained the reasons for introducing partners for the project in the announcement. Country Garden said that the project was hindered by various complicated factors. For example, the assets of one of the intermediate shareholders of the project company (a fellow subsidiary of Country Garden) are currently restricted by the freezing order issued by the Guangdong Higher People’s Court. In addition, Guangzhou Property itself has been mortgaged to several mortgagees as a guarantee for the medium-term notes issued by Country Garden Real Estate Group Co., Ltd. (the same subsidiary of Country Garden) in 2023 with an amount of 1.7 billion yuan due in 2025.
Country Garden said that in view of the above-mentioned complicated factors and the large amount of funds that the project will require, it is difficult for the company to resume construction or sell properties in Guangzhou. Introducing Guangdong Zhongwei as a partner to jointly develop Guangzhou property will provide a timely and urgently needed solution to the difficulties faced by the company in realizing Guangzhou property.
Editor: Meng Mei? ?Proofreading: Zhang Yu?Photo editor: Zhou Yang