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The latest announcement is out from AF Global Limited ( (SG:L38) ).
AF Global Limited has updated shareholders on the ongoing liquidation of its 55%-owned joint venture, Xuzhou Yinjian LumChang Real Estate Development Co., Ltd, which holds the Gulou Square mixed-use development in Xuzhou, China. A fifth auction of key hotel, retail and carpark assets representing the bulk of the project’s value, offered at a reserve price set at a 60% discount to their fair value, again closed without any bids, underscoring weak demand and continued challenges in realizing value from the investment. The liquidator will now meet with AF Global and the joint venture partner to consider further steps, including holding additional auctions at even steeper discounts of up to 70%, pursuing alternative disposal routes for the underlying real estate, or taking other measures needed to complete the liquidation, developments that could lead to further write-downs and prolonged uncertainty for the Group’s China exposure.
More about AF Global Limited
AF Global Limited, incorporated in Singapore, operates as an investment holding group with interests that include property development ventures in China. Through its subsidiaries and joint ventures, the Group participates in mixed-use real estate projects, such as its majority stake in Xuzhou Yinjian LumChang Real Estate Development Co., Ltd, which owns Gulou Square in Xuzhou’s Gulou District.
Average Trading Volume: 388,087
Technical Sentiment Signal: Buy
Current Market Cap: S$115.1M
For detailed information about L38 stock, go to TipRanks’ Stock Analysis page.