China Overseas Land & Investment Ltd. and China State Construction International Holdings Ltd. agreed to subscribe for 80% and 20% stakes, respectively, in a joint venture that will develop a residential site in Kowloon, Hong Kong.

The developer won the tender for the site for about HK$8.03 billion in December 2018. The subscription is expected to close on or before March 22.

The joint venture, Macfull Ltd., is expected to require working capital of HK$12.64 billion to develop the land, up to HK$10 billion of which will be financed by the partners in proportion to their interests.

Under the March 20 agreement, China State Construction nominated its Perfect Castle Ltd. subsidiary to subscribe for the Macfull shares. The deal also calls for the new partner to assume 20% of the HK$8.03 billion loan that was advanced to Macfull to pay for the development site.

China Overseas Land and its construction partner are both subsidiaries of Chinese state-owned China Overseas Holdings Ltd.