Greentown China Holdings Ltd. is spending nearly 331.4 million yuan to acquire a 50% stake in a Chinese football club to raise market awareness and recognition of the Greentown brand name in China.
Greentown Real Estate Group Co. Ltd., a subsidiary of Greentown China, agreed to purchase the half-stake in Zhejiang Greentown Football Club Co. Ltd. from Greentown Holdings Group Ltd.
Zhejiang Greentown, which is valued at approximately 663 million yuan as of May 31, operates a professional football team taking part in China League One. The football club owns a land parcel measuring 216.7 mu, or roughly 144,467 square meters, as well as buildings and training facilities.
The advertising agreement between Greentown China and the football club, struck March 12, 2015, will expire Dec. 31, the company noted in a filing. The deal allowed the Greentown Real Estate brand to be promoted during the club's games and other activities.
As of Dec. 27, US$1 was equivalent to 6.56 yuan.