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Loans Secured by Real Estate
 12 Months Ended
Dec. 31, 2019
Debt Disclosure [Abstract]  
Loans Secured by Real Estate

NOTE 11 – LOANS SECURED BY REAL ESTATE

 

    As of     As of  
    December 31, 2019     December 31, 2018  
             
(A) Standard Chartered Saadiq Berhad, Malaysia   $ 337,150     $ 347,461  
                 
(B) United Overseas Bank (Malaysia) Berhad     236,706       239,444  
                 
(C) Bank of China Limited, Shenzhen, PRC     1,034,037       1,177,617  
                 
(D) Loan from non-banking lender, Hong Kong     385,158       -  
                 
      1,993,051       1,764,522  
Less: current portion     (531,488 )     (147,416 )
Loans secured by real estate, net of current portion   $ 1,461,563     $ 1,617,106  

 

(A) In May 2013, the Company obtained a loan in the principal amount of MYR1,629,744 (approximately $398,402) from Standard Chartered Saadiq Berhad, a financial institution in Malaysia to finance the acquisition of two leasehold office units at Skypark One City, Selangor in Kuala Lumpur, Malaysia (see Note 6). The loan bears interest at the base lending rate less 2.1% per annum (6.7% at December 31, 2019 and 2018), is payable in 300 monthly installments of MYR9,169 (approximately $2,241) each, and will mature in May 2038. The mortgage loan is secured by (i) the property, (ii) personally guaranteed by Mr. Lee Chong Kuang and Mr. Loke Che Chan Gilbert, the directors of the Company, and (iii) guaranteed by a related corporation which is controlled by the directors of the Company.
   
(B) In August 2013, the Company, through Mr. Lee Chong Kuang, the director of the Company, obtained a loan in the principal amount of MYR1,074,696 (approximately $262,717) from United Overseas Bank (Malaysia) Berhad, a financial institution in Malaysia to finance the acquisition of a leasehold office unit at Northpoint, Mid Valley City in Kuala Lumpur, Malaysia (see Note 6). The loan bears interest at the base lending rate less 2.2% per annum (6.81% at December 31, 2019 and 2018), is payable in 360 monthly installments of MYR5,560 (approximately $1,359) each, and will mature in August 2043. The mortgage loan is secured by the property.
   
(C) In December 2017, the Company obtained a loan in the principal amount of RMB9,000,000 (approximately $1,292,546) from Bank of China Limited, a financial institution in China to finance the acquisition of three leasehold office units at the Di Wang Building (Shun Hing Square), Shenzhen, China (see Note 4). The loan bears interest at a 25% premium above the 5-year-or-above RMB base lending rate per annum (6.125% at December 31, 2019), is payable in 120 monthly installments, and will mature in December 2027. The monthly installment will be determined by the sum of (i) a 25% premium above the 5-year-or-above RMB base lending rate per annum on the 20th day of each month for the interest payment and (ii) RMB75,000 (approximately $10,771) for the fixed repayment of principal. The mortgage loan is secured by (i) the property, (ii) a restricted-cash fixed time deposit of RMB1,000,000 (approximately $143,616) of the Company, (iii) the accounts receivable of the Company’s subsidiary Greenpro Management Consultancy (Shenzhen) Limited, (iv) corporate guarantees by the Company and by a related company which is controlled by Mr. Loke Che Chan Gilbert, and (v) a personal guarantee by Ms. Chen Yanhong, the legal representative of Greenpro Management Consultancy (Shenzhen) Limited and a shareholder of the Company.
   
(D) In November 2019, the Company borrowed HKD3,000,000 (approximately $385,158) from Fidelis Business Services Limited, a non-banking lender located in Hong Kong. The loan is secured by the Company’s real estate held for sale (see Note 5), bears an interest at 12% per annum, and is due May 11, 2020. If the Company sells any units of its real estate held for sale before maturity, it is required to pay HKD350,000 (approximately $45,000) as partial repayment of principal.

 

Principal maturities of the loans secured by real estate for the next five years and thereafter are as follows:

 

Year ending December 31:      
2020   $ 531,488  
2021     147,207  
2022     148,052  
2023     148,935  
2024     148,105  
Thereafter     869,264  
         
Total   $ 1,993,051