KWG Property Holding Ltd. and Longfor Properties Co. Ltd. each agreed to lend HK$2.16 billion to a joint venture overseeing the development of a site in Kowloon, Hong Kong.

Fancy Excellent Ltd., which is 50/50 owned by KWG and Longfor, will use the loans, which total HK$4.32 billion, to cover a portion of the cost incurred by the May acquisition of the Kowloon Inland Lot No. 6567 at the Kai Tak Area 1K Site 1 in Kowloon, Hong Kong.

Aside from the loans, both companies also will be guarantors for up to 50% of a HK$2.90 billion bank loan secured by a Fancy Excellent subsidiary, which will be developing the Kowloon site.

According to a filing, approximately HK$2.89 billion of the bank loan will be used by the subsidiary to cover the remaining balance of the land premium payment of the plot, while HK$5.0 million will be used to fund construction costs at the site.