Sinarmas Land enters into JV for total investment of 222.34m yuan

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Sinarmas Land enters into JV for total investment of 222.34m yuan.

SINARMAS Land Limited announced on Tuesday that its subsidiary Shining Gold Real Estate Co has entered into a joint-venture agreement with Rongqiao Group Co and Taicang Rongguan Real Estate Development Co for a total investment of 222.34 million yuan .

Taicang Rongguan Real Estate Development Co, which is 100 per cent owned by Rongqiao, was established on Oct 19 last year to develop and construct a residential site with a land area of 49,358.6 square metres, located in Chengxiang Town, Taicang City, approximately 50km north-west of Shanghai Hongqiao International Airport.

The investment by Sinarmas Land comprises a combination of equity and debt - 94.03 million yuan is for the transfer by Rongqiao to Shining Gold Real Estate Co of 30 per cent of the registered capital of Taicang Rongguan Real Estate Development Co, and 128.3 million yuan as long-term shareholder loan to Taicang Rongguan Real Estate Development Co.

On Tuesday, the group has, through its internal cash resources, paid the total investment amount to Rongqiao and Taicang Rongguan Real Estate Development Co.Sinarmas Land Limited said that the investment will further strengthen the group's property development footprint in China and leverage the strategic collaboration with Rongqiao, thereby enhancing the group's future earnings derived from China.

Upon the completion of the equity transfer of 30 per cent to Shining Gold Real Estate Co, Taicang Rongguan Real Estate Development Co will be regarded as an associated company of the group.

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