However, the seller's efforts to convert the land to commercial and residential land titles over the last six years have been stalled by"numerous protracted challenges and completion of the intended mixed development is not in sight", Raffles Education said.
Raffles Education added that this move would create revenue streams complementary to the group's business."Langfang City, being strategically located between the cities of Beijing and Tianjin, is well poised to cater to the demands for educational facilities of higher education institutions," the company said.
A deposit of 25.4 million yuan, amounting to 10 per cent of the total consideration, shall be paid to the seller within 14 days from July 16, when the agreement was signed. The remaining amount will be paid in two tranches. The first tranche of 54.6 million yuan will be paid within two weeks of obtaining shareholders' approval, while the rest will be paid on Dec 31, 2020, or such other date mutually agreed and confirmed in writing by both parties.