Raffles Education Corporation Limited has announced that its wholly-owned unit, Hebei Oriental Zhuyun Property Development, will be divesting four land plots located in the Langfang Development Zone in Hebei, China for 1.05 billion yuan (S$208 million).
Hebei Oriental had inked an agreement with Langfang Fenghe International Golf Club Co Ltd on 29 February to transfer land use rights for the four plots, measuring a total of 635 mu (422,910 sq m).
“The divestment of these non-core assets will enable us to realise returns on our investments in Oriental University City (OUC),” remarked Chew Hua Seng, Chairman and CEO of Raffles Education Corp.
The exact process and details of the land transfer are yet to be finalised, while the private education group is yet to disclose when the transfer will be completed.
Raffles Education also revealed that it is presently seeking approval of the transfer from the relevant authorities.
“This transaction has enabled us to realise cash for re-investment into our core education businesses,” noted Chew.
The group will still own about 2.8 million sq m of the site, upon completion of the divestment.
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