CHINASINOSTAR: The Bagua City Project Phase II is expected to start construction in October and be completed by the end of 2026
CHINASINOSTAR announced that the Bagua City Project Phase II is expected to start construction in October 2025 and is planned to be completed by the end of December 2026. The land use rights for the project are currently being negotiated with the Huanren Manchu Autonomous County Natural Resources Bureau, and delivery is expected by the end of September 2025. The total construction area of the project has applied to expand from 14,700 square meters to 19,700 square meters, with funding sources including internal cash flow, mortgages, equity financing, government subsidies, and proceeds from pre-sales
According to the announcement from CHINASINOSTAR (00485), for the year ended March 31, 2020, the group acquired the land use rights for a piece of land in China through the acquisition of a subsidiary to develop the Bagua City Project Phase II.
As known to the board, the Huanren Manchu Autonomous County Natural Resources Bureau (the Bureau) is obligated to deliver the vacant possession of the land to the group according to the land transfer contract, and it has been negotiating with the affected original occupants regarding their relocation for many years. The remaining two stubborn households are demanding excessively high relocation compensation, and as of the date of this announcement, negotiations with these households are still ongoing. After multiple urgings and requests for the Bureau to deliver the vacant possession of the land, based on the latest discussions with the Bureau, it has recently obtained a compulsory demolition order against these remaining two households. It is expected that the vacant possession of the land will be delivered to the group by the end of September 2025.
In addition, the group has applied to the Bureau to expand the total construction area of the property to be built on the land. Currently, the Bureau has in principle agreed to expand the total construction area from 14,700 square meters to 19,700 square meters, but formal approval has not yet been obtained as of the date of this announcement.
Assuming the Bureau delivers the vacant possession of the land to the group by the end of September 2025, construction of Bagua City Project Phase II is expected to commence in October 2025, with a target completion date by the end of December 2026, and the completed units will begin marketing and sales in early 2027.
The group plans to fund the construction of Bagua City Project Phase II through a combination of internal cash flow, secured loans, equity financing, government subsidies, and proceeds from pre-sales
