Ping An Real Estate (Hong Kong) Company and PA Glorious Opportunity VIII (PAG VIII) will subscribe for US$100 million of convertible notes from Wuzhou International Holdings. Ping An Real Estate Company has also agreed to enter into a strategic cooperation framework agreement with the latter.

 

According to the purchase agreement of convertible notes, Ping An Real Estate Hong Kong and PAG VIII agreed to buy the US$100 million (Ping An Real Estate Hong Kong: US$60 million and PAG VIII: US$40 million) in convertible notes at an initial conversion price of HK$1.78 per share from Wuzhou International.

 

Assuming full conversion of the 435.955 million shares, the notes represent about 9.36% and 8.56% of the issued and enlarged capital of Wuzhou International, respectively. The convertible notes bear interest at a rate of 7% per annum, and will mature on  September 30 2019.

 

Pursuant to the strategic corporation framework agreement, Ping An Real Estate intends to make strategic investments of up to 1.5 billion renminbi in aggregate within five years in the Group’s future specialised wholesale markets and logistic projects. This will further advance the Group to be the leading integrated merchandising and logistics platform serving China’s SMEs, a company statement said.

 

Moreover, Ping An Real Estate will provide the Group with professional advice and financial support to further develop the Group’s integrated merchandising and logistics platform. Additionally, the former will also assist the Group in leveraging on Ping An’s integrated financial services platform to explore SME financing serving the Group’s extensive network of SME clients. Ping An Real Estate will explore the possibility to deploying insurance capital to make investments in the Group’s stabilized logistics properties.



During the past years, Wuzhou has built up well-recognized brands, accumulated extensive experience in specialized wholesale market development and formed strong tenant network. Leveraging on Ping An Real Estate’s China real estate investment experience and logistics property development expertise, PAG VIII’s strong connection to key players in the region, global platform and expertise, the Group could achieve synergies and further advance in building a leading integrated merchandising and logistics platform.

 

Wei Wang, managing director of Ping An Real Estate Fund Management said, “Wuzhou International will definitely be one of our valuable partners in creating a leading logistics property platform in China. We endeavour to utilize multi-dimensional resources of Ping An’s integrated finance platform to work with the Group and strive for their further business expansion. Leveraging the robust development of China’s logistics property market, we believe that Wuzhou International will be able to take advantage of the growth potential and further grow the business in specialized wholesale market and logistics properties.”