China Real Estate: City Centre Vendor Allegations Unfounded

LONDON (Dow Jones)--China Real Estate Opportunities Plc (CREO.LN), an AIM-listed company established to acquire investment and development properties in China, announced Thursday that letters from City Center property vendors alleging certain conditions under the share purchase agreement may have occurred, which may result in payment of GBP14 million to the vendors, are without merit. MAIN FACTS: -On May. 24, 2010 and Jun. 10, 2010, CREO and CREO (Shanghai City Centre) Limited (which is a wholly-owned subsidiary of CREO) or CSCCL received letters from the vendors of the City Center property requesting certain information, and alleging that certain conditions under the Share Purchase Agreement may have occurred or may be likely to occur. -If substantiated, the allegation may potentially result in a future payment by CREO of an amount of up to GBP14 million to the vendors. -CSCCL and CREO have obtained advice and opinions from both Hong Kong and Peoples Republic of China counsel indicating that the request for information has no basis and any alleged claim for payment as set forth in the Letters have no merit. -Accordingly, CSCCL and CREO intend to defend their position vigorously. -CSCCL and CREO are of the view that the Letters have been sent at an opportunistic time in light of the impending listing by introduction of Treasury China Trust on Singapore Exchange Securities Trading Limited. -Shares at 0718 GMT stood at 420 pence. -By Zechariah Hemans, Dow Jones Newswires; 44-20-7842-9411; zechariah.hemans@dowjones.com (END) Dow Jones Newswires June 17, 2010 03:21 ET (07:21 GMT)