The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from CNW Group

GobiMin Inc. Announces the Acquisition of an Office Property in Hong Kong

Thursday, March 07, 2013

GobiMin Inc. Announces the Acquisition of an Office Property in Hong Kong10:13 EST Thursday, March 07, 2013TSX-V: GMNTORONTO, March 7, 2013 /CNW/ - (TSXV: GMN) GobiMin Inc. (the "Company" or "GobiMin") is pleased to announce that its wholly owned subsidiary has entered into a provisional agreement (the "PA") to acquire an office property in Hong Kong (the "Acquisition") from an independent third party (the "Vendor") together with the existing tenancy with a rental income of USD13,630 (HKD106,000) per month to be received up to March 31, 2014.The tenancy agreement of the existing office premises of the Company in Hong Kong will expire in mid March 2014.  In light of the soaring property prices in Hong Kong and the low interest rates, the Company expects that rental prices will keep increasing. Therefore, the Company proposes to fund the Acquisition and the related stamp duty and agent commission with its own cash for about USD4.17 million (HKD32.4 million) and to settle the remaining consideration by a bank mortgage of about USD2.4 million (HKD18.8 million).Terms of the AcquisitionThe total consideration of the Acquisition is USD6.04 million (HKD47 million).  An initial deposit of USD257,000 (HKD2 million) was paid upon signing of the PA.  The formal Sales and Purchase Agreement will be signed by mid March 2013 with the payment of a further deposit of USD347,000 (HKD2.7 million).  The Acquisition will be completed by the end of June 2013 when the balance of the consideration of USD5.43 million (HKD42.3 million) will become payable.USD1 = HKD7.776"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."To receive GobiMin press releases by email, send a message to info@gobimin.com and specify "GobiMin press releases" on the subject line.SOURCE: GobiMin Inc.For further information: Felipe Tan, Chief Executive Officer Tel: (852) 3586-6500 Email: felipe@gobimin.com