Zhongya Real Estate: We have not given up on investing in Kumrovec
Zhongya Real Estate: We have not given up on investing in Kumrovec
Author: CSEBA / SEEbiz
2nd January 2020
ZAGREB - Zhongya Real Estate has not paid the remaining amount for the purchase of Hotel Zagorje (former Political School building) in Kumrovec in an additional time.

The company said that investor partners of Jiang Yu failed to allocate money to the Republic of Croatia because of technical reasons within the aforementioned period. However, they say that modalities are still being found in order to reach the mentioned money in Croatia as soon as possible. Accordingly, they are ready for new talks with the Government, and announce that, should a new tender be announced, they will respond to it.

As we recently wrote, Beijing is stepping up the battle to stop money flowing out of China as the country contends with economic woes and trade war tensions that have eased but show no sign of ending altogether. Money was leaving the country at a record clip earlier this year through unauthorized channels, according to analysts. That's bad news for China, which needs to keep financial reserves high to maintain confidence in its markets.

Now Chinese officials are trying harder than ever to avoid a repeat of the financial scare four years ago that sapped its money reserves by hundreds of billions of dollars.

The State Administration of Foreign Exchange (SAFE), a key government regulator, said Sunday that its most important job next year is to prevent major financial risks, avoid "abnormal" capital flows across its borders and crack down on illegal trading activities.

"We need to fight a critical battle" to defuse financial risks and maintain market stability, SAFE said in an statement.

Zhongya Real Estate said they proved their seriousness by paying the full tax on the sale of the property (which they have not yet purchased) and the surrounding land of nearly 27,000 square meters. In total, both transactions are worth over one and a half million kunas, and when we add up the bail amount of last spring's tender, we come to the figure of over two million kunas already paid by Chinese investors. That is why, they say, they do not want to give up their planned work.

The Ministry of State Property announced today that the government has yet to decide on the fate of the Zagorje Hotel.

“Zhongya Real Estate Company d.o.o. by December 31, 2019, it had not paid the rest of the funds for the purchase of the Zagorje Hotel or the political school in Kumrovec. The Ministry of State Property will keep bail in the amount of HRK 598,000.00. Considering that the estimated value of the said property is more than HRK 7.5 million, the decision on further disposal of the property will be taken by the Government of the Republic of Croatia at one of the next sessions, ”the Ministry of State Property replied.

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