8/3/2018-4

Cai Zhizhong Materials Center Central can loan 40%

Changshi Group (01113) sold 75% equity interest in the China Center to the China-Hong Kong joint venture consortium last year at a price of RMB 42.0 billion, but the major shareholder China State Energy & Chemical Corporation (hereinafter referred to as the State Reserve) withdrew from the investment by the CEO of Jin Lifeng (01031) Zhu Li Yuehua and Shi Maomao Real Estate (00813) Chairman Xu Rongmao joined the new investor. Cai Zhizhong, a senior investor and a shareholder of the Central Center, believes that this move can eliminate uncertainties and have a positive impact on financing loans.

The equity of the new buyers of the Central Center has undergone tremendous changes, and the State Reserve has previously occupied 55% of the shares but has been resold. Tsai Chih-chung responded that the introduction of Zhu and other powerful investors as shareholders is a good thing. It also proves that they are optimistic about the prospects of the investment market, which will make this transaction clear and have a positive impact. Asked whether the State Reserve has completely withdrawn from the investment, he said: “Since there are any exits, there are problems, and it is normal that the details will not be revealed. We are only a small shareholder.”

Regarding the arrangements for the project, Cai Zhizhong stated that due to the recent fall in interest rates, the funds were abundant. Although the center’s transaction involved a large amount of silver, he was optimistic that he could be borrowed and he expected to borrow 40% from the bank. In addition, other financing arrangements will be held. .

The market has been circulated that the transaction will be sold immediately after the completion of the transaction. Cai Zhizhong bluntly stated, “We should not sell a lot of goods (floors), but many of them will use them for their own purposes, but arrangements will be made to arrange sales after the transaction is completed”.

A number of well-known local investors, including Lu Wenduan and “Cable King” Chen Bingzhi, continued to participate in the transactions of the Central Centre. Lin Zifeng, who cooperated with Chen Bingzhi to invest in properties, denied the participation in this transaction.