Business
Proposed Acquisition
Proposed Acquisition.
About this update from Creo Medical Group Plc
[{"type":"text","content":"\n China Real Estate Opportunities SA\n14 December 2006\n\n\n CHINA REAL ESTATE OPPORTUNITIES S.A.\n\n\n PROPOSED ACQUISITION OF BEIJING PROPERTY\n\n\nChina Real Estate Opportunities S.A. (\"CREO\") announces that it has today\nexchanged conditional contracts for the acquisition of a property in Beijing,\nChina.\n\n\nThe property is a prime mixed-use development located in central Beijing, known\nas the Xidan Centrepoint Shopping Centre, Office Complex and Hotel. CREO has\ncommitted to purchase 100% of the property subject to a number of conditions\nincluding the construction of the project being substantially complete and CREO\nshareholder approval. The vendor is a wholly-owned subsidiary of China\nMetallurgical Construction (Group) Corp, one of China's largest conglomerates\nand a company controlled by China's central government.\n\n\nXidan Centrepoint is located in a prime location on one of Beijing's busiest\nshopping and commercial streets, known as Xidan. The street runs north-south\napproximately 1km directly west of the Forbidden City and Tiananmen Square and\napproximately 1km directly to the east of the Financial Street district. The\nproperty lies less than 100 metres north of Xidan (underground) Station.\n\n\nThe property covers a site area of 16,073 square metres and will when complete\nhave a total gross built floor area of approximately 194,949 square metres over\n15 floors above ground and 4 floors below ground. Of this area, approximately\n102,945 square metres is designated for retail, a 372 room luxury hotel\ncomponent comprises another 32,126 square metres, while an office component is a\nfurther 15,858 square metres. 1,000 car parking spaces and ancillary uses are\ndesignated for the remaining 44,020 square metres.\n\n\nThe property is currently under construction and is expected to be completed by\nDecember 2007. CREO has agreed to pay a total price of RMB 3,742,520,000\n(approximately £243.1m or €361.9m*) payable in stages as title to the property\nis acquired and as the property is completed and leased out. An initial deposit\nwill be paid by the Company from existing cash resources amounting to RMB\n187,876,000 (£12.2 million or €18.2 million).\n\n\nSince this acquisition will be a reverse takeover under the AIM rules, pending\nshareholder approval and completion of the acquisition, the shares of t...