Ying Li receives 1.62b yuan from divestment of stake in Chongqing commercial project

PROPERTY firm Ying Li International Real Estate on Monday said it has received 1.62 billion yuan (S$338.7 million) from purchaser Shengyu BVI on April 28, in relation to its divestment of interests in the Ying Li International Commercial Centre Project.

Accordingly, the company has waived the 0.02 per cent late payment penalty per day on the amounts due under the sale and purchase agreement (SPA) between both parties.

The remaining tranches of consideration remain payable in accordance with the original payment schedule and the terms under the SPA, Ying Li said.

In November last year, Ying Li said that it would sell its stake in a project in Chongqing's central business district (CBD) to Shengyu (BVI), which is part of the China Evergrande Group, for 3.29 billion yuan in cash.

The commercial project is located in Chongqing's Jiefangbei CBD, and is described as a "premium integrated project" consisting of two office tower blocks and a six-storey retail mall.

The development sits on two prime land parcels totalling roughly 18,400 sq m, and features a gross floor area of around 320,000 sq m.

Ying Li had previously indicated that the transaction will help realise the capital value of the Chongqing CBD project and strengthen the company's finances, with net proceeds going towards reinvestment in other property projects, repayment and borrowings and general working capital.

Meanwhile, the company's executive chairman and chief executive, Fang Ming, had said that the divestment will help Ying Li redeploy its capital to other fast turnaround projects with shorter completion cycles.

Shares in Ying Li last traded unchanged at 13.7 Singapore cents apiece on Friday.