[photopress:Shenyangbuilding.jpg,full,alignright]In Shenyang, the capital city of Liaoning province in Northeast China, Great China International’s subsidiary, Silverstrand, has sold all of its outstanding equity interest in the Galaxy Bay residential project at Chessboard Mountain.
Shenyang — Europeans called it Mukden throughout the 20th century — is an area full of interest, home to the Imperial Palace (the first palace of the Qing Dynasty) and Bei Ling Park, again Qing Dynasty, with more than 350 years history.
About 30 km from the city of Shenyang is Chessboard Mountain which is, as they say, a place of great scenic interest. Indeed, the whole area is attractive. The city has an expressway connecting it to Beijing, just over 600 km away, and there are direct air connections to most cities.
Having placed Chessboard Mountain and Shenyang into perspective we can get back to the financial details.
The company said the transaction is valued at more than US$90 million with payments being made as the project proceeds. Great China sold a 50/50 equity interest in the project to Beijing Capital Land which is one of the largest integrated property developers in Beijing and Reco Ziyang which is one of Asia’s largest and leading international real estate investment firms.
Great China has received government approval for the transaction and the transfer of equity ownership is expected to be finished by the end of this month.
Zhiren (Paul) Deng, chief executive officer said, ‘We believe the prospects for Great China in Shenyang remain strong, and we look to position the company to further develop prime real estate opportunities. Great China has been in Shenyang from the start as one of the first companies to develop and manage key real estate properties.’
Great China acquired the 104-acre Chessboard Mountain parcel for US$56.7 million through a public auction in February 2006. The company said it received a market appraisal value of US$88 million in August 2006 which shows its value moving rapidly in the right direction.
Source: Prime News Wire and research