4 Jan 2016 17:04
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: Patrick Boot, Managing Partner Pacific Alliance Real Estate Limited 15/F, AIA Central 1 Connaught Road Central, Hong Kong T: (852) 2918 0088 F: (852) 2918 0881 pboot@pagasia.com
| LEGAL COUNSEL: Jon Lewis, General Counsel PAG 15/F, AIA Central 1 Connaught Road Central, Hong Kong T: (852) 2918 0088 F: (852) 2918 0881 jlewis@pagasia.com |
FINANCIAL ADVISER AND BROKER: Edmond de Rothschild Securities T: (44) 20 7845 5960 funds@lcfr.co.uk
| NOMINATED ADVISER: Philip Secrett Grant Thornton UK LLP 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