HONG KONG, Dec 7, 2021 – (ACN Newswire) – Yuexiu Real Estate Investment Trust (HKEX stock code: 00405) announced that the proposal to acquire Yuexiu Financial Tower from Yuexiu Property Company Limited (HKEX stock code: 00123) was approved by unitholders at the extraordinary general meeting held today, with a majority vote of 96.24%.
Yuexiu Financial Tower, the acquisition of which was approved by unitholders at the extraordinary general meeting, is a scarce top-tier international Grade A office building in the core district of Guangzhou Zhu Jiang New Town CBD. The 309-metre tall building is among the 10 tallest skyscrapers in Guangzhou. It has a total gross floor area of 210,282.94 square metres, a 4-storey shopping arcade, 64-storey office spaces, and a 4-storey basement carpark offering 827 parking spaces. In a strategic transportation hub, Yuexiu Financial Tower boasts convenient transportation access, with several major subway lines in its neighbourhood. Among these subway lines, Metro Line 18 was opened in September this year and Phase 2 of Line 13 is expected to open in 2022. It is also the only office building in Guangzhou that has a helipad for helicopter routes connecting Guangzhou, Shenzhen and Zhuhai. Its unique advantages have attracted many high-quality tenants from different industries including finance, business services, information technology, some being Fortune Global 500 enterprises.
Mr. Lin Deliang, Chairman, Executive Director and CEO of Yuexiu REIT, said, “The voting result has significant meaning as it fully reflects that the majority of unitholders are very supportive of Yuexiu REIT’s acquisition of Guangzhou Yuexiu Financial Tower. After the acquisition is completed, Yuexiu REIT will own the largest PRC portfolio by valuation among Hong Kong and Singapore listed REITs. At the same time, with Guangzhou properties making up a larger portion of its portfolio, the Fund will be able to capture more effectively development opportunities in Guangzhou and the Guangdong-Hong Kong-Macao Bay Area. As manager of the Fund, we will continue to optimize the assets of Yuexiu REIT, maximise the value of its properties, thereby generate the highest returns for unitholders.”
When the acquisition, rights issue and reverse merger are completed, Yuexiu REIT’s pro forma distribution per unit (DPU) is expected to increase by approximately 3.4% and pro forma DPU Yield to increase from 6.68% to 7.16%.
In addition, unitholders whose names appear on the register of unitholders as at 9 December 2021 will receive a special distribution of RMB0.0255 per unit, or approximately RMB85 million in total. The special distribution will be paid within 30 business days after the acquisition is completed.
Topic: Press release summary
Sectors: Real Estate
From the Asia Corporate News Network
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