Mainboard-listed Chinese property developer Ying Li International Real Estate said yesterday that it is selling its stake in a project in Chongqing's central business district (CBD) to Shengyu (BVI), part of the China Evergrande Group, for 3.29 billion yuan (S$671 million) in cash.
The commercial project, formerly known as the Ying Li Chongqing Financial Street Project, is located in Chongqing's Jiefangbei CBD and currently under construction.
It is described as a "premium integrated project" consisting of two office tower blocks and a six-storey retail mall. The project sits on two prime land parcels totalling roughly 18,400 sq m, and features a gross floor area of around 320,000 sq m.
Ying Li indicated that the transaction will help realise the capital value of the Chongqing CBD project and strengthen the company's finances, with net proceeds going towards reinvestment in other property projects, repayment and borrowings and general working capital.
The company's executive chairman and chief executive, Mr Fang Ming, said the divestment will help it redeploy its capital to other fast turnaround projects with shorter completion cycles.