Previously, the first phase of land transfer price of 3.415 billion yuan has been paid for the xinlongsha plot west of the Pearl River tunnel mouth and south of the Pearl River in Liwan District, Guangzhou
Recently, Nanfang + real estate channel learned that China Fortune Land Development Co.Ltd(600340) announced on January 28 that it had received the notice of Guangzhou Municipal Bureau of planning and natural resources on terminating the land transfer contract and its change agreement.
According to public information, China Fortune Land Development Co.Ltd(600340) subsidiaries huayuwan (Guangzhou) Real Estate Development Co., Ltd. and yusuiwan (Guangzhou) Real Estate Development Co., Ltd. obtained the xinlongsha plot west of the Pearl River Tunnel in Liwan District, Guangzhou City, Guangdong Province and south of the Pearl River through public bidding in June 2020 at a transaction price of 6.839 billion yuan, And signed the contract for the transfer of the right to use state-owned construction land and its change agreement with Guangzhou Municipal Bureau of planning and natural resources. China Fortune Land Development Co.Ltd(600340) has paid the first phase land transfer price of 3.419.5 billion yuan according to the above agreement, and so far, the second phase land transfer price of 3.419.5 billion yuan has not been paid.
Xinlongsha plot information west of the Pearl River tunnel mouth and south of the Pearl River in Liwan District, Guangzhou.
Because Guangzhou huayuwan and Guangzhou yusui Bay failed to pay the second phase of land transfer price on schedule as agreed in the above agreement, Guangzhou Municipal Bureau of planning and natural resources issued the notice of Guangzhou Municipal Bureau of planning and natural resources on terminating the land transfer contract and its change agreement. The notice stated that Guangzhou Municipal Bureau of planning and natural resources is now cooperating with Guangzhou huayuwan Guangzhou yusui Bay rescinds the contract for the transfer of state-owned construction land use right and its change agreement. The contract deposit of about 1.368 billion yuan collected by Guangzhou Municipal Bureau of planning and natural resources will not be refunded. In addition to the deposit, the paid land transfer fee of 2.051.7 billion yuan can be refunded to Guangzhou Huayu Bay and Guangzhou yusui Bay.
It is reported that after the cancellation of the above “state-owned construction land use right transfer contract” and its change agreement, Guangzhou Municipal Bureau of planning and natural resources will recover the land use right under the contract. The contract deposit of 1.367.8 billion yuan paid by Guangzhou Huayu Bay and Guangzhou yusui Bay is expected to be irrecoverable.
The announcement said that China Fortune Land Development Co.Ltd(600340) is currently negotiating with Guangzhou Municipal Bureau of planning and natural resources on matters related to the termination of the above contract, so as to obtain the understanding of relevant parties as far as possible, so as to mitigate risks and reduce losses. China Fortune Land Development Co.Ltd(600340) the amount of profit and loss will be recognized according to the negotiation and the provisions of the accounting standards for business enterprises. The final amount of profit and loss shall be subject to the audit results of the accounting firm. In addition, according to the self inspection of China Fortune Land Development Co.Ltd(600340) , there is no similar situation in other projects developed by China Fortune Land Development Co.Ltd(600340) .
