英文： K Wah Intl unit to acquire Shanghai Guo Guang Real Estate for 524.66 mln yuan K Wah International Holdings Ltd (173.HK) said its fully-owned unit Smart Manner Ltd has agreed to acquire Shanghai Guo Guang Real Estate Development Co Ltd from Shanghai State Owned Assets Management Ltd and Shanghai State Knowledge Real Estate Ltd for approximately 524.66 mln yuan.
In a statement, the company said the acquistision price includes the costs of the vendors undertaking the initial stages of development works. The company said under the agreement, the vendors will need to procure the land uses right in relation to a piece of land situated at 701 Guangzhong Road, Shanghai.
The company said 60 pct of the acquisition cost will be funded through internal resources, while the remaining 40 pct will be funded through bank borrowings.
It said it does not expect the acquisition will have an adverse impact on its gearing ratio or cash flow.