The Hong Kong-listed Golden Eagle Retail Group Limited has announced that the company has signed an agreement with the Nanjing Golden Eagle International Group to fully acquire its wholly-owned subsidiary Shanghai Fude Shiji Investment, the owner of the Golden Eagle Shopping Plaza located in Shanghai.
Golden Eagle Retail Group will pay CNY990 million for this transaction the payment will be realized with internal resources. Of this, about CNY360 million will be payed in cash. At the same time, the purchaser will take over the CNY639 million loan of Nanjing Golden Eagle. After the transaction is completed, the group's self-constructed business portfolio will be increased by 12.8%.
Located at the Nanjing West Road business area of Shanghai, Golden Eagle Shopping Plaza is a nine-floor shopping building with a total construction area of about 50,000 square meters. According to public documents, its estimated market value was CNY1.29 billion in September 2008.
At present, the Shanghai Golden Eagle Shopping Plaza is undergoing renovation, aiming to attract international apparel brands as well as dining, beauty, and fitness club lessees. The shopping plaza is expected to reopen in April 2009 and by then, Gucci's 2,000 square meters Chinese flagship store in the shopping plaza will also be opened to local customers.