After Wang Zhenhua arrest Future Land to sell 40 projects

Business | 23 Jul 2019 3:46 pm

Embattled Future Land Development (1030) is negotiating to sell 40 projects after the arrest of controling shareholder Wang Zhenhua, the company said today.

The mainland property developer is in talks with Shenzhen-listed Yango Group to sell property projects, mainland media reported.

Also, Jinke Properties reportedly has agreed to buy 10 projects.

There is uncertainty as to the scope of the target project company. If the disposal can materialize, the company may through  transfer of the equity interests of the project companies, recoup part of the land payment made during the first half. This will lead to an increase in cash funds and optimize the capital structure, the company said.

The company has executed equity transfer agreements for five  projects for 2.4 billion yuan (HK$2.72 billion), accounting for around 8 percent of the net assets of its Shanghai-listed arm Seazen as at the end of 2018.

Shares of Future Land Development slumped 10.25 percent to HK$6.83 as of 2:15 pm.

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