CHUANG'S INT'L: Has completed the sale of the independent house at 37 Hongdao Road, involving a capital of 538 million yuan

CHUANG'S INT'L (00367.HK) announced that it has officially received a cash payment of HKD 538 million from an independent third party in Hong Kong (of which approximately HKD 193 million has been formally paid to the bank to fully repay bank loans and interest), and the sale has been completed today (17th) in accordance with the terms and conditions of the sale agreement. After the completion of the sale, the target company is no longer a subsidiary of the company.

CHUANG'S INT'L previously announced that its wholly-owned subsidiary "Hong Kong Island 37 Investment Limited" has conditionally agreed to sell the sale shares and sale loans to the buyer, with the estimated consideration not exceeding approximately HKD 538.5 million.

The group plans to redevelop the site at 37 Hong Kong Island Road into four independent houses through the target company, and obtained an occupancy permit in April 2009, with the property being one of them. The remaining three independent houses were sold by the group between 2010 and 2011 for a total consideration of approximately HKD 1.338 billion. Based on the historical total cost incurred by the group, the total proceeds from the sale amount to approximately HKD 1.098 billion. The historical acquisition and development cost of the property is approximately HKD 113 million. The total area of the property is approximately 11,620 square feet (including house area, covered parking area, garden area, and private pool). The property has been held by the group as an investment property and has been leased to multiple independent third parties in previous years after redevelopment, and is currently vacant