In addition, the compensation package has been assessed based on a cost approach and has taken into account the compensation for the land, building structures, fixtures and fittings, facilities, removal costs, temporary relocation expenses for twelve months, business interruption losses as well as an incentive bonus for the timely execution of the expropriation agreement and vacation of land.
At the moment, there are currently two tenants at Fu Zhuo Industrial, one of them being a subsidiary of Forchn Holdings Group Co, the sponsor of EC World REIT and the other being a third-party tenant.
Under the lease agreement with the third-party tenant, as a result of the early lease termination due to expropriation, the compensation for expropriation of policy and commercial nature in relation to the building structures repaired, constructed or reconstructed by the third-party tenant shall belong to the third-party tenant. The potential amount of compensation to be paid to the third-party tenant is to be assessed based on the details of the compensation package.
