Rosedale Hotels makes roundabout acquisition of Lizhou Hotel
Rosedale Hotels is negotiating a 51% acquisition of Jinfa Holdings with a HK$75 million loan to its owners to develop Zhuhai Lizhou Resort Hotel.
Rosedale Hotels is negotiating a 51% acquisition of Jinfa Holdings with an additional three month interest-free loan of HK$75 million for the its owners.
Jinfa Holdings is owned by Gold Estate Holdings, a Virgin Islands registered company jointly held (50% each) by Cheng Feng and Lianzhen Liang. Rosedale Hotels set a framework agreement with both owners on December 31, 2014 for the ongoing negotiations.
Rosedale Hotels also drafted an agreement for a three-month interest-free loan of HK$75 million to both owners to enable them to fully acquire Zhuhai City International Commercial Trading (ZCICT).
All terms of the framework agreement are executable after the acquisition of Jinfa Holdings. At that time its owners and Rosedale Hotels will jointly invest HK$300 million to redevelop ZCICT’s real estate and properties.
The redevelopment plan will enable the floor ratio of ZCICT’s hotels to increase at least four times. Rosedale Hotels will cover any expenses if the total investment exceeds HK$300 million.
ZCICT is a legal Chinese entity with main operations in property leasing and management. Its Zhuhai Lizhou Resort Hotel on a 19,200 sqm site in Zhuhai will be returned to it according to the framework agreement date.
Rosedale Hotels said the group will continue to review business strategy and its hotel chain structure in response to market changes, open another source of revenue, achieve industry breakthroughs, and maximize returns for shareholders. (Translation by David)