First Sponsor enters into 4th supplemental agreement over Chengdu project disposal

SINGAPORE - First Sponsor Group announced on Monday (Jan 28) that it has entered into a fourth supplemental agreement with Minyoun Industrial Group Corporation Limited related to the proposed disposal of certain parts of Chengdu Cityspring, a mixed-used residential and commercial project.

Under the agreement, the second floor of Block 9 and 25 basement car park lots will be transferred to an individual, Lu Xi Lin for a purchase price of 30.1 million yuan (S$6 million) and three million yuan respectively, amounting to about 33.1 million yuan. In addition, one basement car park lot will be transferred to an individual, Li Ji Yu for a purchase price of 0.12 million yuan.

First Sponsor's indirect wholly owned subsidiary Chengdu Gaeronic Real Estate Co has received 30.1 million yuan from Mr Lu on Jan 25, 2019 and the remaining three million yuan will be paid by May 31, 2019.

According to the earlier amended agreement, Minyoun Industrial Group Corporation was supposed to pay the second instalment of 20 million yuan to Chengdu Gaeronic Real Estate Co by Dec 28, 2018.

However, 18 million yuan out of the 20 million yuan referred remained outstanding, and the Second Tranche Designated Entity - a joint venture vehicle in which Minyoun Industrial Group Corporation has a majority interest - had been paying liquidated damages to Chengdu Gaeronic Real Estate Co.

First Sponsor announced that the terms of payment for the second instalment will be amended.

Some 18 million yuan out of 30.22 million - comprising the price of Mr Lu's second-floor car park lots and the price of Mr Li's car park lot - will be used to pay the outstanding 18 million yuan.

Under the agreement, Chengdu Gaeronic Real Estate Co will apply to the relevant governmental departments to transfer title to the second floor of Block 9 to Mr Lu and transfer the title to the 25 basement car park lots to him upon the receipt of the remaining three million yuan. The title to the one basement car park lot is in the midst of being transferred to Mr Li.