LIONHUB GROUP LIMITED - Transaction represents first major deal for the techno park
- 50/50 JV to be capitalised initially at S$1 million
- JV to acquire land at LionHub's Xuancheng Singapore Techno Park
- KSL already has manufacturing operations in Singapore and Shanghai
LionHub Group Limited (ASX: LHB) (LionHub or the Company) has signed a Shareholder Agreement with KSL (XC) Pte Ltd (KSL) setting out the broad terms of a 50/50 Joint Venture to be entered into by KSL and Vanda (XC) Pte Ltd (Vanda), a wholly-owned subsidiary of LionHub.
The purpose of the Joint Venture to be named KSL (XC) Metal Industries Pte Ltd is to acquire land at the Company's flagship project, the Xuancheng Singapore Techno Park, for development, with each party to contribute S$500,000 to begin with.
KSL is an established Singapore-based company and is a leading specialist in the design, engineering, fabrication and installation of quality aluminium building facade systems. The industrial group currently has a manufacturing facility in Singapore and two in the greater Shanghai area in China.
LionHub CEO Charles Lim said that the Company was pleased to be a joint shareholder in the new venture with KSL.
The venture arrangement, and its focus to invest in land for development at LionHub's Xuancheng Singapore Techno Park, represents the first major transaction at the project.
"LionHub is pleased to be involved with a Singapore group with manufacturing operations in China, and we see clear potential to replicate this investment model with future partners with an interest in establishing a presence in the Xuancheng region," Mr Lim said.
Mr Lim said LionHub's Xuancheng Singapore Techno Park is situated within the Xuancheng Economic and Technological Development Zone, offering investors and the park's tenants strategic access to the Chinese market without the higher costs associated with real estate and the industrial parks based on China's coastline.
LionHub remains well positioned to service the continued demand for technology parks and logistics property in China, and is the only Australian listed company to offer investors direct access to the high potential industrial-technology park sector in the country.
LionHub's two technology park projects in the Anhui Province in China have approved Master Plans, and both are in preparation for the initial construction phase. The parks will include a mix of property types including logistics, industrial, commercial and residential properties, as well as incubators and accelerators for high-tech startups,
The Company's second project, the Lu'An Singapore Creative Ecological and Industrial Park ("Eco- Park") is also based in Anhui Province.
Charles Lim, Chief Executive Officer +612 8281 3008 or info@lionhub.com.au
Bill Kemmery, FUNDEXA +61 400 122 449 or bill@fundexa.com
About LionHub Group Limited
LionHub Group Limited is a publicly listed real estate development company focusing on technology park devel- opment in China. The Company's portfolio provides Australian investors with an early mover advantage in the mainland Chinese property sector.
LionHub enjoys the support of its major shareholder, the Lian Huat Group, with a 20 year history and extensive property interests across Singapore, Australia and China.
LionHub's focus is to provide an avenue for investors to exploit the potential offered by technology park devel- opments in China, with the Company's first project being the Singapore Xuancheng Technology Park in Anhui Province. Following shareholder approval, In August 2015 the Company acquired a 100% working interest to develop the master plan and to construct and develop a second technology park on land known as Lu' An Singa- pore Creative Ecological and Industrial Park.
Anhui Province is located in central China, with a large population of 60 million in an area of 139,600 km2. It lies in the hinterland of Yangtze Delta, with great economic development potential. Within the province, the Xuancheng Economic Trade and Development Zone has been designated by the Chinese government as an official national industrial transfer zone.
Further information (including recent announcements and investor presentations) is available at the Company's web site: http://lionhub.com.au
Lionhub Group Ltd. issued this content on 18 January 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 28 January 2016 16:23:18 UTC
Original Document: http://www.lionhub.com.au/IRM/PDF/1242/JVformedwithIndustrialManufacturerforLandAcquisition
