Minmetals Land Ltd. sold its 49% stake in each of two residential developments in Guangzhou, China, under two separate transactions executed through its Minmetals Shengshi Guangye (Beijing) Co. Ltd. subsidiary.
Under one of the deals, Minmetals Shengshi Guangye and China Merchants Land Ltd.'s Guangzhou Merchants Property Development Ltd. unit increased the registered capital of Guangzhou Kuangrong Property Development Co. Ltd. to 1.00 billion yuan from 2.0 million yuan. Guangzhou Kuangrong became a 51/49 joint venture of the companies following the transaction.
Guangzhou Kuangrong is the entity overseeing the development of a 13,802-square-meter site that was purchased in November 2018 for 1.09 billion yuan. The plot with a 70-year grant term for residential purposes has a plot ratio between 1.0 and 3.8, according to a Jan. 8 news release.
Meanwhile, pursuant to a memorandum of intent signed March 28, 2019, Minmetals Shengshi Guangye established a separate 51/49 joint venture with another Chinese investor for the development of a roughly 72,000-square-meter site that was secured through an auction in December 2018 for 2.25 billion yuan. The property, which also has a 70-year grant term for residential use, has a plot ratio within the 1.0 to 2.5 range, Minmetals Land added in a separate, same-date filing.
As of Jan. 8, US$1 was equivalent to 6.95 yuan.