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Shui On Land signs on development partner, plans 2.4M-yuan injection in Shanghai

Shui On Land Ltd. unit Shanghai Panrui Investment Management Co. Ltd. will contribute roughly 2.4 million yuan in initial capital to a joint venture company looking to invest in a redevelopment project in Shanghai’s Qingpu District.

The planned redevelopment would deliver a large-scale community of low-density commercial and residential space covering a gross floor area of over 300,000 square meters.

Under the agreement, Shanghai Panrui and joint venture partner Founder Securities Co. Ltd., a representative of Founder XINRONG 39 Assets Management Plan, will respectively contribute and own 49% and 51% of equity interests in their joint company, Shanghai Panxing Management and Consultancy Co. Ltd., which has an initial registered capital of 4.9 million yuan.

The unit plans to fund the initial capital injection through internal resources. Shui On Land expects to use both internal resources and bank financing to meet the estimated capital commitment for the project of up to 1.82 billion yuan.

The partners will make their respective capital contributions in cash within 10 years from the date of registration of Shanghai Panxing, according to a release.

Shanghai Panrui will appoint a chairman and two of the four directors on Shanghai Panxing's board, with the other two to be selected by Founder Securities.

Additionally, Founder Securities granted Shanghai Panrui the option to purchase its entire interest in the venture at any time from 12 months after March 6, the release noted.

As of March 5, US$1 was equivalent to 6.35 yuan.