Goldman Sachs Group published a report that SOHO China (00410.HK) announced a restructuring with Haizhimen, which is 50 per cent owned by Fosun (00656.HK), to sell a 100 per cent stake in the Bund to Zhejiang Fosun for a consideration of Rmb8.493 billion. The company expects pre-tax gains on the sale of assets to be about RMB 1 billion.

Goldman Sachs Group pointed out that taking into account the net proceeds of 4.7 billion yuan from SOHO China's transaction on the project, the net asset value at the end of the year was lowered by 8% to 8.16 yuan, and the target price was lowered correspondingly to 8% to 5.7 yuan, maintaining a "neutral" rating. The bank raised its annual forecast for 2015-16-17 by 281 per cent, 11 per cent and 7 per cent, mainly due to gains from one-off sales this year and future interest income, and expects the net debt ratio to fall from 60 per cent to 45 per cent this year.

The bank pointed out that with regard to the company's acquisition of a 50% interest in the Bund 8-1 site and the subsequent legal action between Zhejiang Fosun and the company on the project, although the Shanghai higher people's Court has not yet ruled on the lawsuit, it is expected that the restructuring of the project will resolve the long-standing asset dispute between the two companies.