ZH International Holdings Ltd. is further expanding its land bank in China's Henan Province via separate deals for three sites for about 2.61 billion yuan.
Henan Xinghan, an indirect wholly owned subsidiary of the company, secured the state-owned rights over two mixed-use sites in Xinxiang after placing the winning bids of nearly 441.1 million yuan and roughly 347.5 million yuan for the properties during an auction administered by the Xinxiang Bureau of Land and Resources.
Both sites are to be used for residential purposes for 70 years and for commercial purposes for 40 years, according to a filing. The site on Kelong Avenue has an area of 45,591.03 square meters and permissible plot ratio between 2.5 and 3.5, while the other site on Xinzhong Avenue has a total area of 36,711.87 square meters and permissible plot ratio between 2.0 and 3.5.
To finance the acquisition, Zensun Real Estate Co. Ltd., the controlling shareholder of the Hong Kong-listed company, agreed to provide separate two-year term loans to Henan Xinghan with amounts equal to the consideration the subsidiary agreed to pay for each site.
Separately, the company said Henan Xinghan also placed the highest bid of nearly 1.83 billion yuan to acquire the rights to use a 58,337.95-square-meter site in Zhengzhou, also in the Henan province. The residential site with permissible plot ratio between 1.0 and 1.7 will also be purchased using loans from Zensun.
As of Dec. 28, US$1 was equivalent to 6.53 yuan.