Rodamco Asia N.V. today announced that the date of completion of its acquisition of Somerset Grand Shanghai, a serviced apartment complex in Shanghai, China, has been extended to 31 August 2002, due to unexpected delays in obtaining the necessary approvals from the Chinese authorities.
On 6 June, 2002, the Company announced that it would acquire 100% of SGS through the purchase of the shares of the company owning the property, being Shanghai Yong Liang Real Estate Development Co., Ltd (Â'Â'SYLÂ'Â'). In that announcement, Rodamco Asia said that completion of the transaction will take place after the necessary regulatory approvals have been obtained, which was expected to be by end June 2002.
Due to the delay in the completion of the transaction, SGS will only contribute towards the result of the current financial year 2002/2003 for a period of six months. Therefore, the positive impact of the acquisition on Rodamco AsiaÂ'Â's net profit for the year is estimated now to be EUR 1.5 million, instead of EUR 2.0 million.
(source: Rodamco Asia)