C Y Foundation Group Acquires Office Premises for its Own Use
(2 Oct 2007, Hong Kong) — C Y Foundation Group Limited, (“C Y Foundation” or the “Group”, SEHK:1182), the interactive media entertainment company focused on providing quality entertainment across China, today announces the purchase of premises in both Hong Kong and Beijing for its own use for an aggregate consideration of about HK$118 million (US$15.13 million).
C Y Foundation, through two of its wholly-owned subsidiaries, will purchase approximately 3,764 sq m of office space in Beijing and approximately 7,388 sq feet of office space in Hong Kong. The purchases will be financed by a combination of cash and mortgage debt.
The Group made the decision based on the determination that the cost of rental payments would be close to mortgage payments on these two properties and, therefore, they could be covered by the rental payments. As a result of this analysis and the current situation of increasing value of property in Beijing and Hong Kong, C Y Foundation has concluded that compared to rental, the Group will benefit significantly from owning its premises in these two territories.
The Hong Kong premises are currently, and will continue to be, the Group’s headquarters. The Beijing premises will provide a base for the fast expansion of the company over the next five years. Both its subsidiaries, T-Matrix, C Y Foundation Culture Company and other management vehicles will all be located here for management efficiency; and all the committees, foundations and associations related to online tournament will also be transferred to this location.
Rudy Io, Chief Financial Officer of C Y Foundation, commented: “The decision to buy these properties was a financially prudent decision. Although it does not mark the start of a policy to move into real estate investment, in these circumstances it makes absolute sense and provides the Group with some solid assets on the balance sheet.”
C Y Foundation Group Limited
C Y Foundation is an interactive media entertainment company focused on providing quality entertainment across China. The Group will provide "green" Internet cafés in China and a national electronic tournament platform to develop the online tournament gaming market. The Group will lead this charge with its flagship entertainment centers and through its PRC vehicle subsidiary, C Y Foundation Culture Company Limited,and its strategic partner, Network Media Center of the Central Committee of the Communist Youth League of China.
For more information:
Strategic Financial Relations Limited
Esther Chan
Tel: (852) 2864 4825
Email: esther.chan@sprg.com.hk
Mandy Go
Tel: (852) 2864 4812
Email: mandy.go@sprg.com.hk
Daphne Chan
Tel: (852) 2864 4817
Email: daphne.chan@sprg.com.hk
Brenda Liu
Tel: (852) 2864 4851
Email: brenda.liu@sprg.com.hk
Fax:(852) 2804 2789 / (852) 2527 1196