FEC acquires mixed-use scheme in London for £95.7m

FEC acquires mixed-use scheme in London from R&F for £95.7m
FEC acquires the Vauxhall Square development from R&F.

Hong Kong-based property development company Far East Consortium International (FEC) has entered into a sale and purchase agreement (SPA) with Big Brilliance, a wholly-owned subsidiary of R&F Properties.

Under the SPA, Next Talent, an indirect wholly-owned subsidiary of FEC, will acquire the entire issued share capital of R&F Properties
VS (UK) Co., Limited (Target Co.) and the intercompany loans at the consideration of £95,702,560 (equivalent to approximately HK$977,123,138).

The Target Co. is developing a large mixed-use scheme currently known as “Vauxhall Square” located at Vauxhall Square, Vauxhall, London, the United Kingdom, with planning consent for approximately 133,000 sqm/1.4 million square feet gross floor area of mixed use development comprising residential, hotel and hostel, office, retail and leisure.

”Big Brilliance will have the option to repurchase the entire issued share capital of the Target Co. and the intercompany loans from Next
Talent on or before 6 months after completion of the acquisition at a consideration of £106,610,353(equivalent to approximately HK $1,088,491,704), plus certain costs and expenses,” said FEC in a statement.

Chris HOONG, Managing Director of FEC said: “We are delighted to acquire this landmark mixed-use scheme in London, United Kingdom. This development provides an excellent opportunity for the Group to grow in a location we understand well and that offers good potential. In particular, we believe we are very suited to undertake a residential-led project of this size. If ultimately Big Brilliance decides to repurchase the development from us, the return for our investment is an attractive one in a short timeframe.”