Shanghai Industrial Urban Development Group Ltd. subsidiary Shangshi Urban Development (Shanghai) City Construction and Development Co. Ltd. agreed to buy the entire equity interest in Shanghai Shangtou Real Estate Investment Co. Ltd. from Shanghai Shangtou Asset Operations Company Ltd. for 530.8 million yuan.
A letter of intent for the purchase was signed in December 2017.
Shanghai Shangtou is primarily focused on secondary land development in China.
The acquisition, which will be financed with internal resources and/or external financing, excludes certain investment properties and inventories of Shanghai Shangtou.
According to a release, a loan with an outstanding sum of 940 million yuan, provided by Shangshi Urban to a Shanghai Shangtou subsidiary, is expected to remain payable following the deal's completion.
As of Feb. 28, US$1 was equivalent to 6.33 yuan.
