This April 2012 photo shows the Great Mall of China project under construction.
KUALA LUMPUR: Berjaya Land Bhd
(BLand), through its unit’s 51% owned subsidiary Berjaya (China) Great Mall Co Ltd (GMOC), is selling its under-construction Berjaya (China) Great Mall Recreation Centre in Hebei Province for 2.08 billion yuan (RM1.39bil) cash.
In a filing with Bursa Malaysia, BLand said GMOC, a subsidiary of Berjaya Leisure (Cayman) Ltd, on Wednesday entered into a construction project transfer agreement with Beijing SkyOcean International Holdings Ltd.
Beijing SkyOcean paid 50 million yuan on signing the contract and would pay 1.015 billion yuan within five days after all conditions precedents in the contract have been fulfilled and the remaining 1.015 billion yuan within 13 months after that completion date,
On how the proceeds would be used, BLand said 1.113 billion yuan (RM743.05mil) would be to repay borrowings, creditors, contractors, and to defray taxes on sale of the Great Mall project and incidental expenses within 12 months from the respective dates of receipt of the cash portion.
“Subject to authorities’ approvals, the cash balance of 967.48 million yuan (RM646.18mil) is proposed to be distributed to the shareholders of GMOC which Berjaya Leisure (Cayman), upon receipt, will utilise such cash for working capital of the BLand group,” it said,
The Great Mall project in Sanhe City, spanning 1.21 million sq metres of gross floor area. will be developed over Phases 1, 1E and 2 and will consist of, among others, retail outlets, three indoor theme parks, a conference and exhibition centre, a hotel and serviced apartments and office lots.
BLand said Phase 1 of the project was currently under construction while Phases 1E and 2 were “vacant”.
The proposed disposal is subject to the approvals of the regulatory and/or governmental authorities in China.
Barring any unforeseen circumstances, BLand expects the proposed disposal to be completed by end-2017.
BLand shares were not traded on Wednesday. They were last sold for 72 sen on Monday.
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