A number of China Merchants Land Ltd. subsidiaries entered into separate agreements to invest a total of approximately 5.10 billion yuan for the joint development of two projects in Nanjing, China.
The group, through its Chongqing Merchants Yi Yun Property Development Ltd. subsidiary, pledged to invest nearly 2.93 billion yuan in Nanjing Shengtong Property Development Ltd., the project company overseeing the development of a 3.35 billion-yuan land parcel in the city.
The investment commitment covers the capital and loan contributions of Chongqing Merchants for Nanjing Shengtong, which was established with Nanjing Jiaotong Investment and Property Development Ltd. for the purpose of obtaining and developing the roughly 107,820.01-square-meter site in Nanjing's Pukou District. The property with a permissible plot ratio of up to 2.2 can be used on a term of 70 years for residential purposes, according to a filing.
Separately, Merchants Nanjing Real Estate Co. Ltd. and Nanjing Merchants Zhaosheng Property Development Ltd. agreed to respectively provide approximately 1.45 billion yuan and 723.9 million yuan to secure a 40% stake and a 20% shareholding in another project company that is developing a 59,128.43-square-meter commercial site in the Chinese city.
Merchants Nanjing and Nanjing Merchants will make the investments pursuant to a deal with Nanjing Dingjiazhuang Logistics Center Co. Ltd., which will hold the remaining 40% in the Nanjing Dingjiazhuang Trading Co. Ltd. project company. The investment commitments also include the roughly 356.6 million yuan and 178.3 million yuan that will be used for the planned capital increase of Nanjing Dingjiazhuang Trading.
The money that will be paid by the subsidiaries for the two developments will be financed using the group's internal resources, China Merchants added.
As of Oct. 8, US$1 was equivalent to 6.93 yuan.