News: First Sponsor extends payment deadline for Chengdu project sale

May 24, 2019

First Sponsor Group’s Chengdu Gaeronic Real Estate (CGRE) is allowing payment instalments for parts of its residential and commercial projects in China. 

First Sponsor Group’s indirect fully-owned unit, Chengdu Gaeronic Real Estate (CGRE), allowed payment in instalments, extended the payment deadline and further amended other payment terms for the proposed sale of parts of Chengdu Cityspring, reported The Business Times.

CGRE is selling certain parts of the China mixed-use residential and commercial project to Minyoun Industrial Group, a Chengdu-based hotel, property and finance firm, for about 465 million yuan (S$92.5 million) in cash.

Three parties entered into the fifth supplemental agreement to the sale and purchase agreement – Minyoun Industrial, CGRE and Ningbo Meishan Bonded Port Area Nanshe Yachun Investment Management Partnershi, a joint venture vehicle wherein Minyoun Industrial holds a majority interest.

The fifth supplemental agreement will see the buyer and/or Ningbo Meishan paying 155.1 million yuan (S$30.8 million), which represents the outstanding amount of the consideration, as at 22 May, via monthly instalments of 10 million yuan to CGRE on the last business day of every month beginning May 2019.

The buyer and/or Ningbo Meishan will also pay liquidated damages at one percent each month on the outstanding amount for the period starting 28 May, to the date CGRE receives full payment of the remaining consideration. Failure to pay the liquidated damages by the fifth business day of every month will see them paying double the liquidated damages for such month.

Title to certain portions of the property will be transferred by CGRE to the buyer and/or Ningbo Meishan, with the consideration not exceeding the monthly instalment, following CGRE’s receipt of each instalment.

Title to the remaining parts of the property will be transferred by CGRE to the buyer and/or Ningbo Meishan once the outstanding amount is fully paid.

Under the third supplemental agreement, the buyer and/or Ningbo Meishan would pay the entire outstanding amount of the consideration to CGRE by 27 May.

CGRE was also supposed to transfer the title to certain parts of the property after it received additional cash amounting to 20 million yuan.

First Sponsor noted that CGRE can terminate the SPA and forfeit the total deposit in the event the buyer and/or Ningbo Meishan failed to pay the monthly instalment or liquidated damages on the due dates or breached any of the terms of the SPA for over 10 business days.

Meanwhile, the buyer and/or Ningbo Meishan can also terminate the SPA, with CGRE returning the total deposit given to them in the event the latter failed to provide relevant documentation or breached the terms of the SPA for over 10 business days.

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Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg

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