Catalist-listed door manufacturer and investment holdings company KLW Holdings has entered into a sale-and-purchase agreement with Prosperity Real Estate Holdings to acquire a 45.45 per cent stake in Mega Sun Development for RMB85 million (about $17.7 million).
Prosperity Real Estate is a wholly-owned subsidiary of Hong Kong-listed property company, Prosperity International Holdings (HK) Limited.
Mega Sun holds a 55 per cent interest in China-based Suzhou Jiaxin Real Estate Development Company Limited, which is developing Fu Yuan Luxury Villas in Suzhou, comprising 51 units. The development is expected to be launched some time in the current quarter.
After the proposed acquisition, the group will have a 25 per cent stake in Suzhou Jiaxin through its 45.45 per cent shareholding in Mega Sun.
KLW said this is its second foray into the real estate business, after its recent acquisition of a Melbourne property for A$23.6 million
Both acquisitions are to be funded from proceeds derived from prior fund-raising exercises.