China Investments Holdings Ltd. (SEHK:132) entered into the conditional preliminary sale and purchase agreement to acquire 98 office units situated at Block 1 of Guangdong-Hongkong Finance & Technology Park from Foshan City Nanhai Chengye Investment Development and Management Co., Ltd. for approximately CNY 200 million of September 16, 2013. Under the terms of deal, CNY 5 million will be paid by China Investments as deposit within 10 working days from the date of the preliminary agreement, subject to fulfillment of all the conditions CNY 95 million will be paid by China Investments as further deposit within 10 working days from the date of the formal S&P agreement. The remaining balance of CNY 99.98 million will be paid by China Investments within 5 working days from the date of completion. The consideration is expected to be funded by a combination of internal resources of the Group and bank mortgage financing (to the extent where available) (the portion of bank mortgage financing being in any event less than 50% of the total consideration). Formal agreement has been signed in December 2013.

The completion of deal is conditional upon fulfillment of all necessary approvals of the relevant PRC governmental or regulatory authorities which are required in respect of the transaction having been obtained by Nanhai Chengye and the approval of the shareholders of China Investments at the special general meeting. The formal sale and purchase agreement will be entered into on or before the expiration of 3 months from the date of fulfillment of all the conditions. In the event of non-fulfillment of the above conditions before January 1, 2014, Nanhai Chengye shall return all amounts paid by China Investments pursuant to the preliminary S&P agreement within 30 days and agreement shall terminate immediately and be of no further effect. It is a completion requirement that a formal agreement within the expiration of 3 months from the date of fulfillment of all the conditions should be entered. The Directors of China Investments Holdings recommended the shareholders to approve the deal. The shareholders of China Investments Holdings approved the deal on November 5, 2013.

The completion of deal is expected to take place before July 31, 2014. Within 60 days from the date of completion, Nanhai Chengye shall process the registration of property rights of China Investments Holdings in the property with the relevant PRC governmental authority. Following the acquisition of the property, the total assets and the net asset value of China Investments Holdings are expected to remain unchanged as the increase in investment property will be offset by the decrease in cash balances and the increase in bank borrowings (in the case where bank mortgage financing is available) of China Investments Holdings. As of August 4, 2014, the completion of the transaction is postponed to December 31, 2014 since the municipal public work surrounding the properties is not yet complete.

Wong Chi Wai of Associated Surveyors & Auctioneers Limited acted as valuer for property. Ng Fai Fiona of HLM CPA Limited acted as accountant for China Investments Holdings. Guangdong Jingzi Law Firm acted as legal advisor for China Investments Holdings. Tricor Progressive Limited acted as transfer agent to China Investments Holdings. Jeffrey Mak of DLA Piper acted as legal advisor to Foshan City Nanhai Chengye Investment Development and Management Co., Ltd.