Union Bridge Holdings Signs Heads of Terms for Nursing Home Facility in Chiang Mai Province, Thailand
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."