Yonglun 2.3 billion purchase of the ownership of Xin’an Building in Causeway Bay
Urban renewal sites are rare. New World (00017) and the Xin’an Building in Cannon Bay, Causeway Bay, which was acquired by the consortium, have changed their ownership before the completion of the reunification of the property. The price is about 2.3 billion yuan.
It is reported that New World and the relevant consortium have officially acquired the Xin’an Building, 20 to 28 Cannon Street since 2015. They have purchased units through Chun Fu Ying Co., Ltd. and Xin Chang International Trading Co., Ltd., and have purchased all 8 shops and floors underground. In the 57 residential units, the purchase price of residential units was from $6 million to $14.16 million. The total transaction price was about 1.03 billion yuan, accounting for over 90% of the building’s ownership.
New World estimates profit of 1.2 times
However, according to the information of the Companies Registry, the two companies of Chun Fu Ying and Xin Chang International Trade have recently converted their directors. The former New World stakeholders have ceased to be appointed to the chairman of the Yonglun Group, Lun Yaoji and Xu Jiehui as new directors. It means that the title has changed hands. The market estimates that the transaction price is about 2.3 billion yuan, which is 1.27 billion yuan higher than the acquisition cost of the New World and related consortia. It is expected to be about 1.2 times.
Xin’an Building has a site area of about 5,000 square meters. It is now an 11-storey old building with a 54-year-old building. Since it has collected over 90% of the ownership, it can apply for a strong shot at any time to unify the title. The site can be developed into a commercial building with a total gross floor area of approximately 75,000 square feet. The land transaction price is 2.3 billion yuan, and the land price per square floor is about 30,700 yuan.
The Yonglun Group has actively purchased commercial properties this year, including W Square Wholesale Commercial Building in Wan Chai, 9 Queen’s Road Central, Central and Queensway Financial Centre, and a number of valuable properties, including Lai King Building. At least 7 billion yuan was used to sweep the goods during the year.