Combine Will International Holdings, through its indirect wholly owned subsidiary Dongguan Combine Will Tengda Technology Company Limited (DCWTT), has proposed the acquisition of a parcel of land in Tianraobu village, Hengli town, Dongguan city, China, from the Tianraobu Village Joint Stock Economic Cooperative (JSEC).
The land, measuring 15,712.44 square metres (169,127.3 square feet), will be acquired for RMB12.4 million (USD2.2 million). The consideration was determined through negotiations and consultancy with the local government, with the final price set via public auction.
The purchase price includes RMB2.5 million already paid as earnest money, with the balance due by 22 July.
Combine Will plans to develop a manufacturing facility on the site to house its service centre and one of its toy manufacturing operations. This move follows the group’s disposal of parcels of land in the Shenshan industrial area of Hengli town, as announced on 8 November 2024.
According to the group, the transfer term for the property is 50 years, with delivery expected before 12 July. An application for extension must be submitted approximately one year prior to the expiry date. Should the contract not be renewed, all buildings, structures and ancillary facilities constructed on the property will revert to the Tianraobu Village JSEC without compensation to DCWTT upon withdrawal of land rights.
Construction on the site is scheduled to begin by 12 October and must be completed by 12 July 2027. Delays of up to one year would incur liquidated damages at 1% of the transfer price daily, payable to Tianraobu Village JSEC, until construction commences.
Failure to settle the purchase consideration by the stipulated date would result in a penalty of 0.01% of the overdue amount per day, calculated from the final payment date until settlement. Should the delay exceed 60 days, Tianraobu Village JSEC reserves the right to terminate the land transfer contract, with no refund of the earnest money.
The Tianraobu property has a book value and net tangible asset (NTA) value of RMB12.4 million (USD2.2 million) as of 23 June, the effective date of the land transfer contract. The acquisition will be financed through the group’s internal resources.
-The Edge
