Fu Zhuo Industrial, a property owned by Hangzhou Fu Zhuo Industrial Co., Ltd, which is in turn wholly-owned by EC World REIT, has received a formal notice from the People's Government of Linping District, Hangzhou City, People’s Republic of China on Jan 6, for the compulsory expropriation of Fu Zhuo Industrial.
The property’s expropriation is for the development of the Grand Canal National Cultural Park in Hangzhou.
Fu Zhuo Industrial is a port property that comprises berths and office buildings and is located in the west of Chongxian New City, north of Hangzhou, on the east bank of the Beijing-Hangzhou Grand Canal.
The property has a total land area of around 24,403 sqm and a total net lettable area (NLA) of around 7,128 sqm with a remaining lease tenure of approximately 34 years.
Based on the latest valuation conducted by Savills Real Estate Valuation (Guangzhou) Ltd on Dec 31, 2020, Fu Zhuo Industrial was valued at RMB117 million ($24.8 million), representing some 1.45% of EC World REIT’s portfolio.
The REIT is entitled to receive compensation based on the expropriation valuation of Fu Zhuo Industrial (including the land use right, buildings and equipment).
See also: Changes in ICR, leverage to come into effect immediately, with additional disclosures in March
It is supposed to vacate the property by March 31.
Details of the compulsory expropriation, including compensation details have yet to be discussed.
Units in EC World REIT closed at 76 cents on Jan 7.
Photo: EC World REIT
