GSX Techedu acquires commercial real estate in Zhengzhou, China

GSX Techedu, an online K-12 large-class after-school tutoring service provider in China, said that it had acquired several commercial real estate plots in the Economics Development Area of Zhengzhou in Henan Province for a total sum of RMB333.8 million ($48 million).

The Chinese education company paid the first installment of RMB69 million ($9.95 million) and is likely to pay the remaining installments in the next three years.

The commercial real estate plots acquired by GSX Techedu includes a couple of completed office buildings and an office building in construction.

The Chinese tutoring service provider will look to use the premises for business operating functions. It expects to start business operations in the acquired office buildings in the second half of this year.

GSX Techedu is engaged in offering K-12 courses covering all primary and secondary grades apart from foreign language, professional and interest courses.