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Jiayuan, partner to establish JV company to acquire, redevelop 6B yuan site

Jiayuan International Group Ltd. subsidiary Jiayuan (Shenzhen) Investment Consulting Co. Ltd. is setting up a joint venture company with Guizhou Hengfeng Weiye Property Development Co. Ltd. to acquire a redevelopment project in the city of Guiyang in Guizhou province, China.

An initial project capital, equivalent to up to 6.12 billion yuan, will fund the purchase of the project's site, of which Jiayuan (Shenzhen) and Guizhou Hengfeng will pay roughly 3.73 billion yuan and 2.39 billion yuan, in proportion to their respective 61% and 39% stakes in the Guiyang joint venture.

The duo will put 6.1 million yuan and 3.9 million yuan, respectively, into the 10.0 million yuan registered capital of the JV company, which will become a non-wholly owned unit of Jiayuan International. Jiayuan (Shenzhen) will use internal resources to fund the capital contribution.

Aside from the acquisition and development, the partnership will work to finance and sell the Guiyang city project, which will feature residential buildings, commercial properties and underground parking on approximately 120,000 square meters of space upon completion.

According to the agreement, Jiayuan (Shenzhen) will appoint a supervisor and two of the three directors, including the chairman, of the joint venture's board, while another director will be selected by its partner.

As of March 8, US$1 was equivalent to 6.34 yuan.