First Sponsor to buy shares in Guangdong land owner for $148.9m

Concord Focus Development owns three land parcels with a total site area of 36,405sqm.

First Sponsor’s subsidiary FS Dongguan No. 9 Investment Consultancy Co. is in talks to acquire shares in Concord Focus Development for approximately $148.9m (RMB738m), an announcement revealed.

Concord Focus Development reportedly owns three land parcels with a total site area of approximately 36,405 sqm situated at Meiyuan Road, Xin’an Community, Chang’an Town in Dongguan, Guangdong province. The property has land rights with expiry dates of 31 January 2088 for residential use, and 31 January 2058 for commercial use, according to First Sponsor.

The agreed property commercial value is said to be based on the assumption that all land transfer fees, conversion premium, interest, taxes and other fees accrued up to the completion date in respect of the property will be fully paid, and the state-owned Land Use Rights Certificates of the Property will be obtained prior to the completion date.

First Sponsor will reportedly deposit approximately $30.3m (RMB150m) in cash which will be used to pay the outstanding land conversion premium, including interest accrued thereon, in respect of the property.

The group will finance the acquisition using its existing cash resources and existing unsecured credit facilities, First Sponsor added.