Yuexiu Property to sell Guangzhou property
Chinese developer Yuexiu Property plans to sell Fortune World Plaza in Guangzhou’s Liwan District.
The sale will be included in a 100 per cent disposal of its equity interest in its subsidiary, Guangzhou Yuehui Property, which owns the 266,000sqm Liwan District wholesale distribution centre. It is understood to be an effort to improve cash flow.
The firm’s announcement read: “The company considers that the proposed disposal is expected to improve the asset turnover rate and generate a significant cash inflow, thus enhancing the group’s ability to acquire additional land parcels or equity interests in other property companies.”
Consistently declining rental incomes since the development opened in 2013 had led to plummeting valuations on the property. The wholesale footwear operations on site had failed to attract European buyers in the face of a slump in the market for Chinese shoes in Europe.
Despite the losses incurred in the project, Yuexiu remains focused on achieving RMB100 billion (US$14.66 billion) in sales revenue by 2020.