CWG buys land near Suzhou amusement park to build integrated development

PROPERTY developer CWG International (formerly known as Chiwayland International) on Thursday said that it has acquired 60 per cent of the equity interest in Suzhou Xinglun Tourism (formerly called Suzhou Industrial Park Business Travel Tourism Industry) for 197.18 million yuan (S$40 million).

The target company owns the iconic Suzhou Ferris Wheel Theme Park. Post-acquisition, CWG will also own two plots of land, with a total estimated gross floor area (GFA) of 75,797 square metres, where it will build an integrated development that comprises serviced apartments, premium residential units and retail space.

The project is situated in East Jinji Lake Central Business District, next to the Jinji Lake. It is also within walking distance from the Suzhou's Ferris Wheel Amusement Park, China's largest Ferris wheel over water.

The first plot of land, with an estimated GFA of 15,000 sqm, fully utilised for the development of retail units, will include a lifestyle fashion zone as well as tourism space linked to the Suzhou Ferris Wheel. This project is expected to be completed by 2021.

The second plot of land with an estimated GFA of 60,797 sqm will be used for the development of 202 serviced apartments, 96 luxurious residential apartments and some retail units. This is expected to be completed by 2019.

The vendor of the transaction was Suzhou Industrial Park Business Travel Development Co. The consideration was fully satisfied in cash and was funded from the company's internal resources.

The net tangible asset value of the target company as at end-December 2016 was 249.07 million yuan.

Assuming that the acquisition had been effected on Jan 1, 2016, the board expects the acquisition to boost the company's FY2016 net profit from 91.94 million yuan to 92.68 million yuan.