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  • Chinese property developer Boyuan (BHL) has agreed to sell its portfolio of Seniors and Lifestyle Living housing assets
  • The assets consist of five regional retirement communities, integrated leisure facilities and undeveloped lots in New South Wales
  • Boyuan will sell these to real estate fund manager, Lincoln Place, for $64 million
  • Proceeds from the transaction will go towards third-party loans related to the asset portfolio being sold
  • Boyuan shares are unchanged at market open, trading for seven cents each

Chinese property developer Boyuan Holdings (BHL) has agreed to sell its portfolio of Seniors and Lifestyle Living housing assets.

The company has entered into a non-binding term sheet for the transaction, which is subject to due diligence.

Boyuan’s Seniors and Lifestyle Living asset portfolio consists of five regional retirement communities, integrated leisure facilities, and undeveloped lots in New South Wales. The properties are located in Tamworth, Green Point, Muswellbrook, Harrington, and Armidale.

The company intends to sell the entire asset portfolio to real estate fund manager, Lincoln Place, for a sum of $64 million. Boyuan’s Deputy Chief Executive Officer and Executive Director, Adam Pearce, announced the sale and commented on the use of its proceeds.

“The divestment is consistent with BHL’s strategy to focus on our core property development and management operations in high-growth corridors in Western and South Western Sydney,” Adam explained.

“The proceeds from the sale will be used, in part, to pay all current third-party loans related to the Seniors and Lifestyle Living portfolio,” he revealed.

Once free of its retirement communities portfolio, Boyuan will be able to give more of its attention to its principal focus. The company wishes to devote more energy to creating master-planned residential and commercial communities at Bringelly, Badgerys Creek, Cobbitty, and Marsden Park.

For now, the asset portfolio sale remains subject to due diligence. Boyuan’s target is to execute binding sale contracts by the second half of July 2020. The timing for the settlement of the transaction is also subject to a review around the need for approval from shareholders and the ASX.

Boyuan shares are unchanged at market open, trading for seven cents each at 10:41 am AEST.

BHL by the numbers
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