A subsidiary of TALENT PPT GP plans to sell land use rights in Yangzhou, Jiangsu Province for 81.6014 million yuan
TALENT PPT GP announced that its wholly-owned subsidiary will sell a piece of idle land use rights to the Yangzhou Municipal Government for RMB 81.6014 million. The land has not generated any revenue since its purchase in 2017. Due to market downturns and the impact of the pandemic, the group has decided to realize asset value through the sale to optimize resource allocation and focus on construction in developed areas. This transaction is expected to have no significant impact on the group's operations
According to the announcement from New Heaven Real Estate Group (00760), on September 15, 2025, the seller (the company's indirect wholly-owned subsidiary Guangzhou Guoyou and Yangzhou Shiyou) entered into a repurchase agreement with the buyer (the People's Government of Guangling District, Yangzhou City), under which the buyer agrees to acquire and the seller agrees to hand over and sell the land use rights for a price of RMB 81.614 million.
Location of the subject land parcel: South of Kaifa East Road, West of Luli Road, North of Heng Er Road, and East of Xincun Road in Guangling District, Yangzhou City, Jiangsu Province, China.
The land use rights for the parcel (including Area A and the subject land parcel) were purchased through public bidding from the Yangzhou Municipal Bureau of Land and Resources, a government agency under the People's Government of Yangzhou City, in January 2017. The group prioritized the development of Area A and began selling the commercial and office units built there in 2019, while the subject land parcel remained idle awaiting further development. However, due to the continued downturn in the Chinese real estate market in recent years, coupled with poor sales performance in Area A during and after the pandemic, the group did not initiate the development of the subject land parcel as originally planned, and the parcel remains idle without generating income, resulting in no revenue since the acquisition of the land use rights. To optimize the group's resource allocation, after considering the location, permitted uses, potential development prospects of the subject land parcel, and the current market conditions, the group sought ways to realize the value of the land use rights at a reasonable price.
After prolonged discussions, the contracting parties agreed on the repurchase arrangement, under which the land use rights will be resold to the local government (the buyer, which is a government agency under the People's Government of Yangzhou City), and the proceeds will be exclusively used to complete the unfinished construction projects in Area A. As of June 30, 2025, Area A has been developed into twelve commercial and office buildings, of which seven buildings have been completed and are available for sale. The remaining five buildings have unfinished works mainly including the installation of exterior walls and some public area renovations.
Considering the above factors and the terms of the repurchase agreement, the board of directors believes that through the sale, the group can realize the value of idle assets without incurring further capital commitments for the subject land parcel, thereby enhancing liquidity and concentrating resources to complete the development of Area A. Furthermore, since the group has no plans to develop the subject land parcel, the sale will not have a significant impact on the group's business operations
