Opinion Network News:On December 24, Fairchild International Group Holdings Limited disclosed its letter of intent to lease properties in China.
On 24 December 2021 (after trading hours on the Stock Exchange), an indirect wholly-owned subsidiary of Shenzhen Zhaohua International entered into a letter of intent with Shenzhen Zhaohua Convention and Exhibition Industry Co., Ltd. Accordingly, Shenzhen Zhaojun can lease properties under development in Shenzhen, China, for residential operation from Shenzhen Zhaohua.
It is reported that the property is close to some parts of the property under development at the Shenzhen International Convention and Exhibition Center and is expected to have a rentable area of about 10000 square meters.
The lease is for an initial period of 15 years and is currently expected to be around the fourth quarter of 2022 starting from the occupation of these properties by Shenzhen Fengjun.
Within 10 working days after signing the letter of intent, Shenzhen Fengjun shall pay 800000 yuan to Zhaohua in Shenzhen as the intention money for possible lease. If any formal agreement is reached between the parties on the lease of these properties, the intention deposit will form part of the lease deposit. The intention is determined after fair negotiation between the parties and is refundable.
Investors International intends to use its internal resources to finance the interest fund.
For this lease, the company said that the company is mainly engaged in accommodation operation, providing accommodation consulting and accommodation facilities management services and other related business. As at the date of this announcement, Shanghai International has five operating leased accommodation projects in Shenzhen, Huizhou, Chengdu and Wuhan, China.
Shenzhen Zhaohua is a limited company established in China, which is held by China Merchants Shekou Industrial Zone holding Co., Ltd., a non-wholly-owned subsidiary of the state-owned enterprise China Merchants Group Co., Ltd., and Shenzhen overseas Chinese Town Co., Ltd., a non-wholly-owned subsidiary of the state-owned overseas Chinese Town Group Co., Ltd., respectively. To the best of the knowledge, knowledge and belief of the directors of Shenzhen Zhaohua and the above-mentioned parent company having made all reasonable enquiries, Shenzhen Zhaohua and its parent company are independent third parties.
Coach International said it plans to expand the coverage of its accommodation business and has been exploring suitable locations. As these properties will be built near Shenzhen International Convention and Exhibition Centre and Shenzhen Baoan International Airport, the company considers that the possible lease of new these properties is a good opportunity to expand the accommodation business.
Zhaohua International stressed that the company is still negotiating with Zhaohua in Shenzhen on the main terms of the possible lease. Therefore, the letter of intent does not necessarily lead to the conclusion of a formal agreement with Shenzhen Zhaohua, and the final terms, if any, of the possible lease in the formal agreement may be different from those contained in the letter of intent.