HONG KONG, April 2, 2018 /PRNewswire/ -- Union Bridge Holdings Limited (the "Company"; OTCQB: UGHL) announced today that its subsidiary, Windsor Honour Limited ("WHL"), has entered into a Binding Heads of Agreement to enter into a cooperative venture with the owner of a land parcel of approximately 4,250 sq. m. in Chae Chang Sub-district, Sankamphaeng District, Chiang Mai Province, Thailand, for the purpose of building and operating a senior-care nursing home facility. The facility is proposed to have four blocks, each with eight floors, and house approximately 400 residents.
The parties will negotiate in good faith toward definitive agreements regarding the project. WHL would lease the land and be the developer of the project and would own the buildings on the site. WHL would have full control of the design and supervision of the construction of the project, as well as daily operations and management of the project.
The land owner would be responsible for obtaining necessary construction, operation and other permits for the project and would provide necessary liaison with government officials.
Total investment in the Project for development and construction is estimated to be approximately 200 million Thai Baht (approximately US$6.4 million at current exchange rates), for which WHL would be responsible to obtain financing. WHL would also be responsible for arranging financing of operating costs until they can be funded from operations.
The project would lease the land for 90 years with automatic renewal each 30 years. The total rent for the 90 years would be 10 million Thai Baht (approximately US$320,000 at current exchange rates). In addition to the rent, WHL may consider a discretionary bonus to the land owner (with details to be agreed in the definitive agreements).
WHL will pay 2 million Thai Baht (approximately US$64,000 at current exchange rates) as a deposit to the land owner within 90 days, which will be refundable if the development plan for the land as a senior nursing home facility has not been approved by the competent government authority within one year, or if before that date such authority has definitively denied the application for the development plan upon the request of WHL. Otherwise, the deposit will be retained by the land owner and, if definitive agreements are executed, applied to the rent for the land.
Mr. Joseph Ho, Chief Executive Officer of UGHL, said, "We believe it is a very important milestone for the Company to kick off the development of a senior home in Asia, and specifically in Thailand, as we continue to pursue the long-term growth of the Company."
Forward Looking Statements
This Press Release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements concerning plans, objectives, goals, strategies, expectations, future events or performance and underlying assumptions and other statements which are other than statements of historical facts. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "would," "expect," "plan," "project," "anticipate," "estimate," "believe," or "think." Forward-looking statements involve risks and uncertainties which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. These risks and uncertainties include:
- The ability of the parties to successfully negotiate definitive agreements for the project
- The land owner's ability to successfully obtain a change to the permitted land use and all other necessary government permits for the project
- Our ability to obtain all necessary financing for development, construction and operation of the project on economic terms
- Our ability to successfully manage the development, construction and operation of the project, for which we have no experience (although we intend to retain experienced professional firms undertake these roles)
- Our ability to attract residents to the facilities
- General economic, social and regulatory conditions in Thailand
Investors should carefully consider these risks and review the risk factor disclosure and other information, including the Company's financial statements and the notes thereto, set forth in the reports and other documents the Company files with the SEC available at www.sec.gov.
The Company assumes no duty to update or revise its forward-looking statements based on changes in plans or expectations or otherwise.
SOURCE Union Bridge Holdings Limited