Hongkong Land Hldgs Ltd Acquisition of Land in Shanghai (5911D)
February 20 2020 - 3:41AM
UK Regulatory
TIDMHKLD
RNS Number : 5911D
Hongkong Land Hldgs Ltd
20 February 2020
HONGKONG LAND HOLDINGS LIMITED
DISCLOSEABLE TRANSACTION
ACQUISITION OF LAND IN SHANGHAI
This announcement contains Inside Information.
THE ACQUISITION
Hongkong Land Holdings Limited has secured a prime 23.1 hectare
mixed-use site on the West Bund of Shanghai from the Government via
auction on 20th February 2020 for a consideration of
RMB31,050,000,000 (equivalent to approximately US$4.4 billion).
The acquisition provides the Group with an attractive
opportunity to develop and operate a commercial complex of scale in
a prime location in Shanghai, the predominant commercial hub of the
Chinese mainland. The transaction is in line with the Group's
long-standing strategy to acquire prime sites in key gateway cities
across Asia.
The development of the Land will be in multiple phases and is
expected to complete by 2027. The Group has extensive experience in
developing large commercial projects for long term investment in
Greater China and Southeast Asia. Post completion, the project is
expected to provide the Group with a stable stream of recurring
earnings. The Board believes that the acquisition is in the best
interests of the Group.
INFORMATION ON THE LAND
The Land is located alongside the Huangpu River South Extension
area in the Xuhui District of Shanghai (collectively known as the
land for the West Bund Project, with a total site area of 231,300
square metres and an accountable gross floor area of 1,087,050
square metres). The detailed location of the Land is set out below.
The Land will be used primarily for Grade-A office, retail,
residential and hotel purposes. The term of the land use rights is
40 years for retail and hotel purposes, 50 years for office
purposes, and 70 years for residential purposes. Approximately 24%
of the accountable gross floor area may be developed for sale in
accordance with the land grant.
CONSIDERATION
The land cost is RMB 31,050,000,000 (equivalent to approximately
US$4.4 billion) and will be paid in instalments during 2020.
The Group is considering a range of funding options without
recourse to shareholders, including internal resources and external
funding (including, but not limited to, pre-sales, cooperation with
strategic partners, and debt, subject to any applicable regulatory
approvals). The Group has sufficient liquidity to fund the land
cost and does not intend to seek funding from shareholders.
ABOUT HONGKONG LAND GROUP
Hongkong Land is a major listed property investment, management
and development group. The Group owns and manages more than 850,000
sq. m. of prime office and luxury retail property in key Asian
cities, principally in Hong Kong, Singapore, Beijing and Jakarta.
The Group also has a number of high quality residential, commercial
and mixed-use projects under development in cities across Greater
China and Southeast Asia. In Singapore, its subsidiary, MCL Land,
is a well-established residential developer. Hongkong Land Holdings
Limited is incorporated in Bermuda and has a standard listing on
the London Stock Exchange, with secondary listings in Bermuda and
Singapore. The Group's assets and investments are managed from Hong
Kong by Hongkong Land Limited. Hongkong Land is a member of the
Jardine Matheson Group.
DEFINITIONS
Group Hongkong Land Holdings Limited, a company incorporated
in Bermuda and has a standard listing on the London
Stock Exchange, with secondary listings in Bermuda
and Singapore, and its subsidiaries
Land a parcel of land located at Plot Nos. xh130C-02,
xh130C-06, xh130D-03, xh130D-04, xh130D-06, xh130D-08,
xh130D-09, xh130D-11, xh130D-12, xh130E-03, xh130E-04,
xh130E-06, xh130E-07, xh130E-09, xh130E-11, xh130E-12,
xh130F-03, xh130F-04, xh130F-06, xh130F-08, xh130F-09,
xh130F-11, xh130F-12, xh130G-03, xh130G-04, xh130G-07,
xh130G-09 and xh130G-11 of Zone WS3 in Huangpu
River South Extension area in the Xuhui District,
Shanghai
RMB Renminbi
US$ US dollar
For reference, an exchange rate of US$1.00: RMB7.01 has been
used for converting the land consideration into US dollars.
Jonathan Lloyd, Jardine Matheson Limited
For and on behalf of Hongkong Land Holdings Limited
20th February 2020
www.hkland.com
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END
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