First Sponsor sells Chengdu property for $97m

The property sale includes parts of a 29-storey building with 7 retail spaces.

First Sponsor Group subsidiary Chengdu Gaeronic Real Estate sold portions of a mixed-used residential and commercial project property Chengdu Cityspring in Chengdu, Sichuan province at $97m (RMB 465m).

According to an announcement, purchaser Minyoun Industrial Group Corporation is a Chengdu-based company engaged in hotel, real estate, and finance.

The sale includes a 29-storey commercial building excluding the basement and 7 retail spaces on its first floor, a retail space on the first floor of another 29-storey commercial building, and 318 basement car park lots.

The whole Chengdu Cityspring property includes six residential buildings, four commercial buildings, as well as 1,273 basement car park lots.

Under a leasehold interest which expires in March 2049, the property is owned by First Sponsor Group.

The 4-star M Hotel Chengdu occupies parts of a commercial building in Chengdu Cityspring. Other than the hotel and the carpark lots, the rest of the property comprises of commercial units.

Based on a valuation report in January 2018, the remaining property value of Chengdu Cityspring owned by First Sponsor Group after the sales will be at $72.3m (RMB354m).

For First Sponsor Group, the sales is a good opportunity to dispose an underperforming asset at a profit whilst further strengthening the Group’s balance sheet.

The company will continue its ownership of properties with encouraging perfomances, including the 458-room Crowne Plaza Chengdu Wenjiang Hotel and the 150-room Holiday Inn Express Chengdu Wenjiang Hotspring Hotel.