City Centre Development

RNS Number : 7721N

China Real Estate Opportunities PLC

17 June 2010

 



CHINA REAL ESTATE OPPORTUNITIES PLC

RECEIPT OF LETTERS FROM VENDORS OF CITY CENTER

China Real Estate Opportunities plc ("CREO" or the "Company"), is an AIM-listed company established to acquire investment and development properties in China.

On 24 May 2010 and 10 June 2010, CREO and CREO (Shanghai City Centre) Limited (which is a wholly-owned subsidiary of CREO) ("CSCCL") received letters (the "Letters") from the vendors of the City Center property (the "Vendors") requesting certain information, and alleging that certain conditions under the Share Purchase Agreement (as defined below and which was entered into in June 2007) may have occurred or may be likely to occur. If substantiated, the allegation may potentially result in a future payment by CREO of an amount of up to approximately GBP14 million to the Vendors (as defined below).   

CSCCL and CREO have obtained advice and opinions from both Hong Kong and Peoples Republic of China counsel indicating that the request for information has no basis and any alleged claim for payment as set forth in the Letters have no merit.  Accordingly, CSCCL and CREO intend to defend their position vigorously. CSCCL and CREO are of the view that the Letters have been sent at an opportunistic time in light of the impending listing by introduction of Treasury China Trust on Singapore Exchange Securities Trading Limited (the "SGX-ST").

CREO will make further announcements as and when there are material developments in the above matters.

The City Center Share Purchase Agreement

On 1 June 2007, CSCCL and CREO entered into a share purchase agreement in respect of the acquisition by CSCCL of Brightime Limited and State Properties Limited (the "Share Purchase Agreement") from the Vendors. Brightime Limited and State Properties Limited, through their wholly owned subsidiary Shanghai Hua Tian Property Development Co., Ltd. ("Hua Tian"), own the City Center property in Shanghai.

Contact:

CREO

Ray Horney, Chairman

Tel: [phone]

Sarah Moriarty, Investor Relations

Tel: [phone] 

Matrix Corporate Capital
Paul Fincham
Tel [phone]

Davy

Des Carville   

Tel: [phone]

Citigate Dewe Rogerson

Tom Baldock

Tel: + 44 (0) 20 7638 9571

Murray Consultants

Ed Micheau

Tel: + 3531 498 0300

 

END

 

 

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