Printmgr File
Total Page:16
File Type:pdf, Size:1020Kb
APPENDIX III PROPERTY VALUATION December 29, 2017 The Board of Directors Everbright Grand China Assets Limited Rm 1501, 15/F, Malaysia Building No. 50 Gloucester Rd, Wanchai, Hong Kong. Dear Sirs, In accordance with your instructions to value the properties held by Everbright Grand China Assets Limited (the “Company”) and its subsidiaries (hereinafter together referred to as the “Group”), we confirm that we have carried out inspections, made relevant enquiries and searches and obtained such further information as we consider necessary for the purpose of providing you with our opinion of the market values of the property interests as at October 31, 2017 (the “valuation date”). We carried out our valuation on a market value basis. Market value is defined as “the estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion”. We are given to understand that the property interests were owner-occupied, in vacant possession or subject to existing tenancies as at the valuation date. For the property interests which were owner occupied and in vacant possession, we have adopted the direct comparison approach by making reference to comparable sales evidence as available in the relevant market. For the tenanted property interests, we have valued the property interests on the basis of capitalization of the net income derived from the existing tenancies with due allowance for reversionary income potential of the respective properties and where appropriate, also made reference to the comparable market transactions. We prepared our valuation on the assumption that the seller sells the property interests in the market without the benefit of a deferred term contract, leaseback, joint venture, management agreement or any similar arrangement, which could serve to affect the values of the property interests. In addition, no account has been taken of any option or right of pre-emption concerning or affecting the sales of the property interests. Our report has not made any allowance for any charge, mortgage or amount owing on any of the property interests valued nor for any expense or taxation which may be incurred in effecting a sale. Unless otherwise stated, we have assumed that the properties are free from encumbrances, restrictions and outgoings of an onerous nature, which could affect their values. In valuing the property interests, we have complied with all requirements contained in Chapter 5 and Practice Note 12 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited; the RICS Valuation — Professional Standards published by the Royal Institution of Chartered Surveyors; the HKIS Valuation Standards published by the Hong Kong Institute of Surveyors; and the International Valuation Standards published by the International Valuation Standards Council. We have relied to a very considerable extent on the information given by the Group and have accepted advice given to us on such matters as tenure, planning approvals, statutory notices, easements, particulars of occupancy, lettings, and other relevant matters. We have been shown copies of various title documents including State-owned Land Use Rights Certificate, Real Estate Title Certificate and official plans relating to the property interests and have made relevant enquiries. — III-1 — APPENDIX III PROPERTY VALUATION Where possible, we have examined the original documents to verify the existing title to the property interests in the PRC and any material encumbrance that might be attached to the property interests or any tenancy amendment. We have relied considerably on the advice given by the Company’s PRC legal advisors — Tian Yuan Law Firm, concerning the validity of the property interests in the PRC. We have not carried out detailed measurements to verify the correctness of the areas in respect of the properties but have assumed that the areas shown on the title documents and official site plans handed to us are correct. All documents and contracts have been used as reference only and all dimensions, measurements and areas are approximations. We have not taken any on-site measurement. We have inspected the exterior and, where possible, the interior of the properties. However, we have not carried out investigation to determine the suitability of the ground conditions and services for any development thereon. We prepared our valuation on the assumption that these aspects are satisfactory and that no unexpected cost and delay will be incurred during construction. Moreover, we have not made any structural survey, but, in the course of our inspection, we did not note any serious defect. We are not, however, able to report whether the properties are free of rot, infestation or any other structural defect. We have not carried out tests on any of the services. Mr. Cliff Lau and Mr. Jack Chan carried out the inspections of the properties in January 2017 and July 2017. Mr. Cliff Lau has 25 years’ experience in the valuation of properties in the PRC. Mr. Jack Chan is a member of RICS and HKIS with 15 years’ experience in the valuation of properties in the PRC. This valuation and its conclusions are necessarily based on information that the Group provided to us. We have no reason to doubt the truth or accuracy or completeness of that information, and we have no reason to suspect that any material information has been withheld. However, there is always a risk that this valuation and its conclusions are based on inaccurate or incomplete information. We are not responsible for any losses arising in relation to reliance on the valuation, or any part of it, in those circumstances. Neither the whole nor any part of this report or any reference thereto may be included in any document, circular or statement without our prior written approval of the form and context in which it will appear. This report is for the use only of the party to whom it is addressed, for the specific purposes to which it refers. We are not responsible for any losses arising in relation to reliance on the valuation, or any part of it, by any other party. Unless otherwise stated, all monetary figures stated in this report are in Renminbi (RMB). Our valuation is summarized below and the valuation certificates are attached. Yours faithfully, for and on behalf of Landscope Christie’s International Real Estate Jack Y. H. Chan MRICS MHKIS Director Landscope Christie’s International Real Estate Koh Keng Shing MRICS FHKIS RPS (GP) Chief Executive and Founder Note: Jack Y. H. Chan is a Chartered Surveyor who has 15 years’ experience in the valuation of properties in Hong Kong and the PRC as well as relevant experience in the Asia-Pacific region. Koh Keng Shing is a Chartered Surveyor who has 30 years’ experience in the valuation of properties in Hong Kong and the PRC as well as relevant experience in the Asia-Pacific region — III-2 — APPENDIX III PROPERTY VALUATION SUMMARY OF VALUATION Group I — Property interests held by the Group for investment in the PRC Market value in existing state as at No. Property October 31, 2017 1. The First, Second, Third and Fourth Levels of Ming Chang Building, Renmin Road RMB182,400,000 Central, Wuhua District, Kunming, Yunnan Province, The People’s Republic of China. 2. The Second Basement, Third Basement, First, Second, Third and Fourth Level of RMB323,000,000 Everbright International Mansion, No. 2 Caoshi Street, Qingyang District, Chengdu, Sichuan Province, The People’s Republic of China. 3. The First Basement, Second Basement, Third Basement, 1st Floor to 23rd Floor and RMB340,200,000 25th Floor to 26th Floor, Everbright Financial Center No. 9 Wenwu Road, Qingyang District, Chengdu, Sichuan Province, The People’s Republic of China. 4. Block C9, D1 and H6, Dufu Garden, Wu Hou Qu, Long Zhua Cun, 10 Zu, 11 Zu, RMB21,200,000 Chengdu, Sichuan Province, The People’s Republic of China. Sub-Total RMB866,800,000 — III-3 — APPENDIX III PROPERTY VALUATION SUMMARY OF VALUATION Group II — Property interests held by the Group for own occupation in the PRC Market value in existing state as at No. Property October 31, 2017 5. 24th Floor, Everbright Financial Center, RMB9,800,000 No. 9 Wenwu Road, Qingyang District, Chengdu, Sichuan Province, The People’s Republic of China. Sub-Total RMB9,800,000 — III-4 — APPENDIX III PROPERTY VALUATION SUMMARY OF VALUATION Group III — Property interests held by the Group for sale in the PRC Market value in existing state as at No. Property October 31, 2017 6. Block D2 and D3, Dufu Garden, Wu Hou Qu, Long Zhua Cun, 10 Zu, 11 Zu, Chengdu, RMB14,000,000 Sichuan Province, The People’s Republic of China. Sub-Total RMB14,000,000 — III-5 — APPENDIX III PROPERTY VALUATION VALUATION CERTIFICATE Group I — Property interests held by the Group for investment in the PRC Market value in Particulars existing state as at Property Description and tenure of occupancy October 31, 2017 1 The First, Second, Third and Ming Chang Building Portions of the RMB182,400,000 Fourth Levels of Ming Chang comprises two residential property with an Building, Renmin Road towers of 20-story and approximate gross Central, Wuhua District, 14-story respectively erected floor area of 14,387.4 Kunming, Yunnan Province, upon a 4-story commercial sq.m. (154,866.0 The People’s Republic of podium on top of a two-level sq.ft.) are tenanted China carparking basements. with various tenancies / supplemental tenancy, The subject property with the latest one to comprises the whole of the be expired on 4-story commercial podium of November 30, 2021.