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Greenland Hong Kong Holdings, partner to establish $8B Silk Road Integrated Real Estate Fund

and Kuwait Strategic Investor plan to create an US$8 billion Silk Road IntegratedReal Estate Fund.

The Chinesereal estate company signed a framework deal with Kuwait Strategic's wholly ownedcompany Al Waseet International for the potential transaction, according to a filing.The fund will have an eight-year term and will seek diversified capital fundingfrom different investors for investments in the global real estate market.

The agreementalso includes Greenland's possible acquisition of an approximately 41% effectiveinterest in the Park Lane real estate project in New York from Kuwait Strategic.

Greenlandagreed to issue 459,005,021 convertible preferred shares in the company to Al WaseetInternational as payment for the New York property acquisition. The convertiblepreferred shares will be convertible into ordinary shares of the company, subjectto certain terms and conditions.

If allthe convertible preferred shares are converted into ordinary shares, Kuwait Strategicwill become the second-largest shareholder of Greenland, with over 10% of the company'sissued share capital, assuming that it has not issued any other ordinary sharesin the meantime, according to Greenland.

Greenland'sboard believes that the framework deal with Kuwait Strategic will be a "mutuallybeneficial" partnership, which will align with China's One Belt, One Road initiative.It will also allow Greenland to expand in new regions and explore an additionalsource of revenue.

Bothparties expect to enter into definitive agreements on or before May 26 for the potentialtransactions.