CIMC subsidiary, CIMC Container Manufacturing, has reached an agreement on the preparation of three parcels of land with Shenzhen Planning and Natural Resources Bureau and Shenzhen Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone Authority.
The parties confirmed that the compensation value of the Southern CIMC is about 12.89 billion yuan, and agreed to replace the land use right of the same value under the new planning conditions to the Southern CIMC.
According to the announcement issued by CIMC, the three parcels, namely T102-0152, T102-0153 and T102-0154, are located in the development unit of Shenzhen Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone 07, 09, with a total of 524,000 square metres.
According to the consolidation agreement, the parties agree to compensate the Southern CIMC according to the determined compensation value calculation method, that is, the 1 January 2015 is the time for the evaluation of the land value under the new and original planning conditions.
After deducting the policy rigid expenditure, the land value-added income will be compensated for 40 per cent of the remaining portion of the South China CIMC. The compensation value of the Southern CIMC, which was confirmed by all parties to the agreement, was approximately 12.89 billion yuan. At the same time, the parties to the agreement agreed to replace the equivalent land use rights with the compensation value of 12.89 billion yuan to the Southern CIMC.
According to the announcement, following the principle that the principle of planning indicators is unchanged, the business is relatively balanced, and the land is relatively concentrated, the parties agree that the replacement land area is about 92,100 square metres, and the total construction area is about 627,900 square metres. The land use right value of the replacement land is about 12.516 billion yuan, and the difference between the compensation value enjoyed by the Southern CIMC is 374 million yuan. The parties to the agreement agree to resolve the replacement of the equivalent value of land use rights in the difference portion by negotiation.
The Qianhai Administration agreed to sign the land use right assignment contract for the above-mentioned replacement land with CIMC within three months from the completion of the registration of the real estate cancellation registration for the three parcels in the consolidation agreement. The land use right of the replacement land is 1 January 2015, and the land use period is determined according to the maximum period specified by the state. Commercial apartments in the replacement land can be marketed.
Previously, the Southern CIMC had signed the issue of land consolidation for the three parcels on 9 October 2017, with the former Shenzhen Planning and Land Resources Committee (now the ‘Shenzhen Resources Bureau’) and the Qianhai Administration. Land Consolidation Framework Agreement. On 19 February 2019, the Southern CIMC signed a supplementary agreement with the Qianhai Administration; on 27 February 2019, the wholly-owned subsidiary of CIMC and the Qianhai Administration on the land for the first phase of Qianhai’s preliminary start-up project. Some plots signed the ‘Shenzhen Land Use Right Transfer Contract’.
CIMC said in the announcement that signing the completion agreement will help accelerate the progress of land preparation in Qianhai, and will also help CIMC to seize the opportunity of Shenzhen's urban development and renovation, and enhance the overall efficiency and shareholder returns of the company's existing resources. In line with the overall interests of the company and its shareholders.