[photopress:property_Huapu_Centre_1.jpg,full,alignright]Property transactions can be quite complex and, indeed, at times quite baffling.
China Central Properties (CCP) is a property investment company quoted on the London Stock Exchange’s AIM Market which focuses primarily on medium to large partially completed projects in China.
CCP has a portfolio of properties, which include commercial, retail and residential complexes, in Guangzhou, Dalian, Qingdao, Beijing, Chengdu, Shenyang and Chongqing.
It also owns a company called Mountain Breeze (Barbados) SRL which, in turn, has a subsidiary company called Beijing ZhongTian HongYe Real Estate.
Beijing Zhongtian has entered into several agreements for the purchase of Beijing Huapu Centre.
Beijing Huapu Centre is located in Beijing’s prime Dongcheng District and consists of two office towers, each 24-storey high on a nine-storey podium. There are about 127,500 square metres of mixed office and retail space.
The estimated market value of Beijing Huapu Centre is approximately RMB 2.5 billion.
Now CCP is disposing of Mountain Breeze (which includes Beijing ZhongTian HongYe Real Estate) and CCP will record a gain on disposal of the project, before transaction costs, of about RMB300 million. CCP intends to use the sale proceeds to fund its acquisition of additional property projects.