Yuexiu Fantou announced last month that it plans to acquire Yuexiu Financial Tower, an international grade An office building owned by Yuexiu Real Estate, which is located in CBD, the Pearl River Metro in Guangzhou, for a total consideration of 7.8 billion yuan.
Yuexiu Fantou Chairman, Executive Director and CEO Lin Deliang and other management management explained the transaction through an online press conference today.
Lin Deliang pointed out that it is believed that the funds obtained from the sale of Yuexiu Real Estate, the parent company, can be used for its own investment in land development, and it is also a good channel for Yuexiu to inject assets, and it is believed that a win-win situation can be achieved.
Although the economy is affected by the epidemic, the office buildings in Guangzhou are relatively less affected, with a vacancy rate of about 7 to 8 percent, and double-digit figures belonging to other parts of the country are low. Guangzhou is optimistic about the industrial momentum of Guangzhou, and it is expected that more enterprises will be stationed in Guangzhou office buildings.
Due to the relatively young age of the properties, the acquisition can reduce the average age of the properties under the Fund from 14.2 years to 13.4 years, and increase the proportion of the company's growth properties.
He also considered that it was a good time to pay attention to the investment opportunities in the market, including the mainland and Hong Kong, as well as internal and external opportunities.
However, he said that he would adopt a strategy of stability and success, so he would focus on this transaction with the parent company for the time being.
