CAPITALAND's subsidiary Ascott Group has signed a compulsory agreement to sell The Masters Golf & Country Club asset in Guangzhou to the Chinese Government.
Ascott has signed a compensation agreement with Land Requisition Office of the Guangzhou Municipal People’s Government to sell The Masters Golf & Country Club for $S199 million.
This transaction is a result of a compulsory acquisition of the land site where The Masters Golf & Country Club is situated, for the planned construction of the Guangzhou-Wuhan public railway lines.
Under the terms of the compensation agreement signed between the Guangzhou Land Office and Ascott’s indirectly owned subsidiary, Guangzhou F.C. Golf & Country Club Co., Ltd., the Guangzhou Land Office has agreed to acquire the land, the buildings and ancillary facilities of The Masters Golf & Country Club.
The club was developed in the mid 1990’s by one of the merger entities before the formation of Ascott and was financed mainly by shareholder’s loans. As provisions were made in the past to write down the shareholder’s loans, this transaction will result in an estimated write-back of $S91 million.
Despite this, Ascott’s chief executive Cameron Ong said the group remains committed to building a strong presence in
“We currently have about 4,000 serviced residence units in eight cities, and we’re targeting to achieve 10,000 units through further expansion in
Located in the Liwan district, the golf club has an 18-hole golf course covering a total land area of 934,498 sqm with a 64-bay driving range, a 6,000 sqm club house and staff accommodation.
Australian Property Journal
