China Merchants Land Limited ("China Merchants Land" or "the Company", stock code: 00978) and its subsidiaries (the "Group") has appointed Mr. Xu Yongjun, the director and general manager of the controlling shareholder, China Merchants Shekou Industrial Zone Holdings Co., Ltd. (招商局蛇口工業區控股股份有限公司) ("China Merchants Shekou"), as a non-executive director and the chairman of the board of China Merchants Land. The appointment of Mr. Xu as the chairman is beneficial to the synergetic deployment of strategic resources and win-win development of the domestic and overseas listed platforms under China Merchants Shekou and China Merchants Land, and is conducive to the strengthening of China Merchants Land's strategic position. After several months of preparation, a series of measures have swung into action.
Resume asset injection, leveraging listed platform to integrate overseas assets
China Merchants Land today announced entering into agreements with a wholly-owned subsidiary of China Merchants Shekou for the acquisition of the properties consisting of a building erected on Connaught Road West ("CM+ Serviced Apartment, North Tower") and a partially completed building on New Market Street, Hong Kong ("CM+ Serviced Apartment, South Tower"), for a consideration of no more than approximately HK$506 million and HK$609 million respectively. China Merchants Land will finance the consideration for the aforesaid acquisitions by banking facility.
China Merchants Shekou injects its wholly-owned premium properties in Sheung Wan, Hong Kong - the north and south towers of CM+ Serviced Apartment into China Merchants Land, fully leveraging China Merchants Land's overseas listed platform to integrate its assets in Hong Kong to achieve mutual benefits. The total site area of CM+ Serviced Apartment, North Tower, is approximately 236 sq m. Its aggregate gross floor area amounts to approximately 3,541 sq m, comprising a total of 54 units for domestic use. The total site area of CM+ Serviced Apartment, South Tower, is approximately 363 sq m, with foundation works completed and superstructure works commenced around March 2016, which are expected to be completed by August 2017. The aggregate gross floor area of South Tower amounts to approximately 5,448 sq m and consists of 81 guest rooms for domestic use.
The said transaction signifies the resolution of China Merchants Group and China Merchants Shekou to continue to expand and enhance their overseas listed platform, resuming and accelerating asset injection activities. In the short run, the Group will leverage its fund-raising abilities to provide funds to rejuvenate and explore the potential of China Merchants Shekou's existing overseas assets, creating values for both the domestic and overseas platforms. In the long run, the Group will fully leverage the highly efficient and diversified overseas financing channels to gradually realise light-asset operations by specialising in property operation management service and property finance service via the separation of light and heavy assets.
Strengthen the management team to improve execution capabilities
In addition, China Merchants Land announced the appointment of Executive Director Mr. Yu Zhiliang as general manager of the Company. Mr. Yu, who previously worked as the chief financial officer of the Group, has over 15 years of experience in the property industry. During his service as chief financial officer, Mr. Yu had demonstrated outstanding performance in managing property finance, financing, cost control and monitoring internal control of China Merchants Land. Besides excelling in the area of financing and accounting, Mr. Yu also has extensive experience in operations and corporate governance through years of involvement in the management of relevant property business of China Merchants. Ms. Jin Yan will take over as the chief financial officer. Ms. Jin has been working for China Merchants Shekou for a long time, and is in charge of financial and funds management activities. She is familiar with the capital market of Hong Kong, and is well-versed in financing and financial management, which will be conducive to the Company's property finance business development. With new management appointments, the core management team comprising Mr. Yu Zhiliang, executive director and general manager, Mr. Wong King Yuen, executive director and deputy general manager, Ms. Jin Yan, chief financial officer, Mr. Wang Yu, director for investment, and Ms. Chan Wing Yan, secretary to the board of directors, has extensive experience in the aspects of property investment, asset operation and property finance, etc.
According to the interim results announcement of China Merchants Land, the Company realised contracted sales for the first six months of 2016 of RMB8.47 billion, representing a year-on-year increase of 116 per cent, thereby laying a solid foundation for the Company's subsequent operating results.
About China Merchants Land Limited
China Merchants Land is a holding company with comprehensive capabilities of property development, operation and management. Its property portfolio spans across Guangzhou, Chongqing, Foshan, Nanjing and Xi'an. China Merchants Shekou Industrial Zone Holdings Co., Ltd. indirectly owns a 74.35 per cent equity interest in the Company.
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