Yanlord, GIC to co-invest up to $1.38 billion in residential projects in China

Yanlord chairman and CEO Zhong Sheng Jian said that the company is pleased to continue its partnership with GIC.
Yanlord chairman and CEO Zhong Sheng Jian said that the company is pleased to continue its partnership with GIC.PHOTO: BUSINESS TIMES

SINGAPORE - Mainboard-listed developer Yanlord Land Group is partnering Singapore sovereign wealth fund GIC to co-invest in residential projects in China.

Its wholly owned subsidiary, Yanlord (China) Investment Group, has entered into an agreement with a GIC affiliate to form an investment platform for that purpose, the company said in an exchange filing after the stock market closed on Tuesday (Aug 4).

Under a "cooperation programme", the two parties will invest up to 7 billion yuan (S$1.38 billion) over a seven-year period. They have the option to extend the programme by another two years.

Yanlord will own 51 per cent of each of the project companies and joint venture companies to be co-invested in, while the GIC affiliate will own the remainder.

This is not the first such tie-up between the two. Yanlord and GIC have co-invested in property development projects in Nanjing and other key cities in China since 2006.

Yanlord chairman and chief executive Zhong Sheng Jian said that the company is pleased to continue its partnership with GIC. "The cooperation programme will further strengthen our presence in China and create value to the shareholders," he said.

Apart from its focus on property projects in China, Yanlord currently has two residential projects under development in Singapore, namely Leedon Green and Dairy Farm Residences. In February, it completed its takeover and privatisation of property developer United Engineers.

Yanlord shares rose one cent or 0.8 per cent to close at $1.22 on Tuesday.