GuocoLand, Hong Leong to develop residential project in Chongqing
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A joint venture of GuocoLand and Hong Leong Holdings (China) (HLHC) will acquire and develop four land parcels in Chongqing, China, for residential use.
This comes after Chongqing municipality awarded the construction land use right for the plots to the joint venture, GLL Chongqing 18 Steps, at a bid price of 1.68 billion yuan (S$324.6 million), GuocoLand said on Friday.
GuocoLand owns a 75 per cent interest in the joint venture while HLHC holds a quarter stake.
The acquisition of the land parcels will be financed by capital contributions in proportion to the equity of each partner.
Meanwhile, the development of the residential project will be financed by internal resources, external borrowings and shareholders' loans in proportion to the equity of each partner.
The land plots are situated in Liangjiang Xinqu of Chongqing Yubei district area.
They span a land area of 141,968 square metres, with a total above-ground gross floor area of 197,600 sq m.
HLHC is a subsidiary of Hong Leong Holdings Limited, which is in turn a subsidiary of Hong Leong Investment Holdings.
Singapore-listed GuocoLand is part of Hong Kong-listed Guoco Group, owned by South-east Asia conglomerate Hong Leong Group.
THE BUSINESS TIMES