Zhitong Financial News, Junan Holdings (01559) issued an announcement on December 15, 2023, the seller Metrocity Properties Group, Inc(an indirect non-wholly owned subsidiary of the Company) entered into the Agreement with the Purchaser, Robinsons Land Corporation, in relation to the Matter. Pursuant to the agreement, the vendor has agreed** and the purchaser has agreed to purchase the property at a consideration of approximately 9P2.7 billion.
It is learnt that the property is the land and the hotel building. The land is located in Padre Faura St, brgy.669 Zone 072, Ermita District, Manila, The Philippines. With a total site area of 3,312 square metres, the land is freehold land for commercial and residential development.
According to the announcement, due to the increase in interest rates and the slowdown of the global economy, the Philippine property market is facing multiple challenges and uncertainties. Plus the financing scheme has not yet been agreed with the lender;and the deterioration of the Group's financial performance is restricting the Group's significant investment in the development projects, which may therefore pose risks to the Group and limit the Group's ability to further develop its construction and other businesses. In view of this, the Board considers that it is appropriate to realise the investment in the Property and concentrate the Group's resources on its construction and other businesses.