Pacific Alliance China Land Limited Realisation of Project Diplomat (7863K)
January 04 2016 - 12:04PM
UK Regulatory
TIDMPACL
RNS Number : 7863K
Pacific Alliance China Land Limited
04 January 2016
4 January 2016
Pacific Alliance China Land Limited
Realisation of Project Diplomat
Pacific Alliance China Land Limited ("PACL") (AIM: PACL), the
closed-end investment company admitted to trading on AIM, is
pleased to announce that on 31 December 2015 it executed a binding
Sale and Purchase Agreement for the realisation of its investment
in Project Diplomat. Project Diplomat is a luxury residential block
in the Second Embassy district of Beijing. Built by an
international developer, it has been operated as serviced
apartments since 2002.
PACL has agreed to sell its 40% interest in Project Diplomat,
together with its co-investor (the "Sellers"), to a local fund
managed by CITIC Private Equity Fund Management Co., Ltd., one of
the top private equity firms in China. PACL is expected to receive
gross RMB cash proceeds equal to USD 100.8 million in the first
quarter of 2016, representing a net IRR of 16.6% and a net cash
multiple of 2.6x on its initial investment.
Completion of the transaction will require the approval of the
Ministry of Commerce!|s local counterpart in Shanghai ("MOFCOM"),
and registration with State Administration of Industry and
Commerce's local counterpart in Shanghai ("SAIC").
The purchaser will pay a 15% deposit into escrow within three
business days, and will pay the remainder of the purchase price,
net of a RMB 35 million holdback, into escrow after (a) MOFCOM
approval is granted, and (b) the purchase mortgage over the
property is registered as required by the purchaser!|s financiers.
The 15% escrow will be released to the Sellers after SAIC
registration is completed, which is expected to occur in March
2016.
The RMB 35 million holdback will be held in a separate escrow
and released to the Sellers 12 months after closing net of any
allowable deductions under the Sale and Purchase Agreement.
Subject to the receipt of PRC tax clearance, the USD realisation
proceeds will be distributed to shareholders through a future
mandatory share repurchase, or another method to be determined by
the Board, which may occur as early as the second quarter of
2016.
For further information please contact:
MANAGER: LEGAL COUNSEL:
Patrick Boot, Managing Partner Jon Lewis, General Counsel
Pacific Alliance Real Estate PAG
Limited 15/F, AIA Central
15/F, AIA Central 1 Connaught Road
1 Connaught Road Central, Hong Kong
Central, Hong Kong T: (852) 2918 0088
T: (852) 2918 0088 F: (852) 2918 0881
F: (852) 2918 0881 jlewis@pagasia.com
pboot@pagasia.com
--------------------------------- ----------------------------
FINANCIAL ADVISER AND BROKER: NOMINATED ADVISER:
Edmond de Rothschild Securities Philip Secrett
T: (44) 20 7845 5960 Grant Thornton UK LLP
funds@lcfr.co.uk T: (44) 20 7383 5100
Philip.J.Secrett@uk.gt.com
--------------------------------- ----------------------------
About Pacific Alliance China Land Limited
Pacific Alliance China Land Limited ("PACL") (AIM: PACL) is a
closed-end investment company admitted to trading on the AIM Market
of the London Stock Exchange in November 2007. PACL is focused on
investing in a portfolio of existing properties, new developments,
distressed projects and real estate companies in Greater China.
For more information about PACL, please visit:
www.pacl-fund.com
Pacific Alliance China Land Limited is managed by a member of
PAG (formerly known as Pacific Alliance Group), the Asian
alternative investment fund management group. Founded in 2002, PAG
is now one of the region's largest Asia-focused alternative
investment managers, with funds under management across Private
Equity, Real Estate and Absolute Return strategies. PAG has a
presence across Asia with over 300 staff working in the region.
For more information about PAG, please visit:
www.pagasia.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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