Chinese property developer Jiayuan International Group is looking to acquire a 90% stake in three property development projects in Shanghai in a roughly HK$693.6 million deal.
Jiayuan, which is looking to expand into the Shanghai property market, conditionally agreed to acquire Huyuan Holdings Ltd. from its chairman and controlling shareholder, Shum Tin Ching.
Jiayuan will fund the acquisition with a cash payment of HK$416.2 million and the issuance of 19,566,400 shares, or about 0.80% of its issued share capital as of June 5, at HK$14.18 apiece to Shum or his nominees.
The three Shanghai projects held by Huyuan Holdings and its units include Huijing Huating, Fengcheng Mingdu and Jiayuan Dream Square, offering a total gross floor area of approximately 593,770 square meters.
Huijing Huating and Fengcheng Mingdu are completed residential projects, while Jiayuan Dream Square, which has total gross floor area of about 434,154 square meters, is a residential complex under development. The preliminary appraised value of the projects is approximately HK$2.15 billion, according to a filing.
The deal is subject to approval by Jiayuan International shareholders at its extraordinary general meeting.
