Beijing Properties : Announcements and Notices - Voluntary Announcement in Relation to the Acquisition of ...

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(Incorporated in Bermuda with limited liability)

(Stock Code: 925)

VOLUNTARY ANNOUNCEMENT

IN RELATION TO THE ACQUISITION OF

LAND USE RIGHTS IN THE PRC

The Board is pleased to announce that on 13 March 2019, Qingdao Yongcheng, made a successful bid for the land use rights of the Site through open tender auction organized and held by the JLRC. The consideration for Acquisition is RMB35,210,000 (equivalent to approximately HK$41,182,250).

DETAILS OF ACQUISITION

On 13 March 2019, Qingdao Yongcheng made a successful bid for land use right of the Site through open tender auction organized and held by the JLRC and entered into the Bid Confirmation with JBNR, pursuant to which the parties to the Bid Confirmation confirmed (among others) (i) that Qingdao Yongcheng has been awarded the right to acquire the land use right in respect of the Site; and (ii) the Consideration.

The Site is located in Jiaozhou Economic and Technological Development Zone, starting from Taohe Road (洮河路) in the North and ends at Yihe Road (沂河路) in the South, along the west side of Jiaoda Avenue (交大大道). The area of the Site is approximately 170 mu (113,428 square metres). The Site is allowed for warehouse development, with land use rights of 50 years.

Qingdao Yongcheng and JBNR will enter into a formal contract or contracts for the grant of the land use rights in respect of the Site within ten (10) working days after the Bid Confirmation is signed (not including the date of signing the Bid Confirmation), and principal terms of such contracts are expected to be same as those set out in the Bid Confirmation and related document(s) for the bid.

Consideration

The Consideration for the Acquisition payable by Qingdao Yongcheng is RMB35,210,000 (equivalent to approximately HK$41,182,250) which is the bid price submitted by Qingdao Yongcheng. Qingdao Yongcheng has paid a total deposit of RMB35,210,000 which will be applied towards settlement of the total Consideration.

The Consideration was determined based upon the transfer price for the transfer of land use right in respect of land fixed and tendered by the JBNR under the land transfer contract.

The Consideration will be paid by the internal resources of the Group.

Principal terms of the Bid Confirmation and related document(s) for the bid

Date:

13 March 2019

Parties:	1.	Qingdao Yongcheng
2.	JBNR

To the best of the Directors' knowledge, information and belief having made all reasonable enquiry, JLRC, JBNR and its ultimate beneficial owners are independent third parties not connected with the Company or any of its subsidiaries or any of their respective directors, chief executives or substantial shareholders or any of their respective associates.

Surety paid in order to	A sum of RMB35,210,000 (equivalent to approximately
become a qualified bidder:	HK$41,182,250) was deposited with the JLRC as surety,
which is refundable if Qingdao Yongcheng performs
its obligations to enter into formal grant contract and
performs its payment obligations thereunder.
Land for transfer:	The Site
Term:	50 years for warehouse purpose
Development costs

The development costs of the Project will be financed by way of internal resources of the Group. The Company considers that the expected expenditure incurred for the development of the Project would not have any material adverse impact on the financial position and business of the Group as a whole.

REASONS FOR AND BENEFITS OF THE ACQUISITION

The Group is principally engaged in investment, development and operation of (i) high-end and modern general warehouses; (ii) cold chain logistics warehouses; (iii) specialised wholesale market for the trading and distribution of local agricultural products; (iv) modernized industrial plants; and (v) investments in commercial properties and primary land development. The project is expected to build approximately 130,000 square metres logistic warehouse and it will broaden the asset and earnings base of the Group. The Directors (including the independent non-executive directors) is of the view that the Project is in the ordinary and usual course of business of the Group and is on normal, fair and reasonable commercial terms and is beneficial to the Company and the shareholders as a whole.

Qingdao Yongcheng is an indirect subsidiary of the Group, its principal business is engaged in provision of logistics and its related value-added service.

LISTING RULES IMPLICATIONS

The announcement is published by the Company on a voluntary basis.

DEFINITIONS

In this announcement, unless the context otherwise requires, the following expressions having the following meanings:

"Acquisition"	the acquisition of the land use rights of the Site by way
of auction
"associates"	has the meaning ascribed to it under the Listing Rules
"Bid Confirmation"	the land use right bid confirmation (成交確認書) in
respect of the Site dated 13 March 2019 and entered into
between the Qingdao Yongcheng and JBNR
"Board"	the board of Directors of the Company
"CLI"	China Logistics Infrastructures (Holdings) Limited,
a company incorporated in British Virgin Island and a
65%-owned subsidiary of the Company
"Company"	Beijing Properties (Holdings) Limited, a company
incorporated in Bermuda with limited liability, the shares
of which are listed on the Stock Exchange
"Consideration"	RMB35,210,000 consideration of the Acquisition, being
the price for the transfer of land use right in respect of
the Site under the Bid Confirmation
"Director(s)"	the director(s) of the Company
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"Group"	the Company and its subsidiaries
"HK$"	Hong Kong dollars, the lawful currency of Hong Kong
"Hong Kong"	Hong Kong Special Administrative Region, the PRC
"JBNR"	the Jiaozhou Bureau of Natural Resources (膠州市自然
資源局)
"JLRC"	the Jiaozhou City Land Reserve Center (膠州市土地儲
備整理中心).
"Listing Rules"	the Rules Governing the Listing of Securities on the
Stock Exchange
"PRC"	the People's Republic of China
"Project"	the logistics development project to be developed by
Qingdao Yongcheng on the Site
"Qingdao Yongcheng"	Qingdao Yongcheng International Logistics Ltd. (青島永
成國際物流有限公司), a company incorporated in PRC
and an indirect wholly owned subsidiary of the CLI
"RMB"	Renminbi, the lawful currency of the PRC
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