News: First Sponsor subsidiary completes acquisition of stake in Guangdong site

May 22, 2019

It now has a 60 percent share in Concord Focus Development. Image source: 1st-sponsor

First Sponsor’s fully-owned unit, Wenjiang (BVI), has completed the acquisition of 60 percent share in Concord Focus Development, reported The Business Times.

Concord owns a mixed-use development site, comprising three land parcels with a combined area of 36,405 sq m, in China’s Guangdong province.

On 25 April, First Sponsor said the preliminary price for the entire stake in Concord was 404 million yuan ($81.6 million), under a definitive conditional sale and purchase agreement (SPA) inked last month.

It added that the actual price of the 100 percent acquisition would be equal to Concord’s adjusted consolidated net asset value and its fully-owned unit, Dongguan Kanghe Property Management Consulting Services, at the date of completion of the acquisition.

Concord, Dongguan Kanghe and three individuals who together own all of the shares in Concord entered into the SPA with another fully-owned unit of First Sponsor, FS Dongguan No 9 Investment Consultancy (FS No 9), last month.

The SPA provided that FS No 9 and/or other parties nominated by FS No 9 from the three individuals will acquire 100 percent of Concord shares, subject to First Sponsor retaining a controlling interest in Concord following the acquisition.

On 4 March, First Sponsor revealed plans to jointly develop the property for commercial and residential use with the third-party purchaser.

It said that the Guangdong site has land use rights that are set to expire on 31 January 2058 for commercial use and 31 January 2088 for residential use.

In a recent SGX filing, First Sponsor shared that the remaining 40 percent of Concord shares have been purchased by Masaoka Realty Investment (HK) Limited (MRL), an unrelated third party that was designated to be one of the buyers as per the SPA.

First Sponsor noted that MRL is a private investment vehicle of a high-net-worth individual.

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Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg

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