Beijing Capital Land Ltd. subsidiary Beijing Zhongrui Kaihua Investment and Management Co. Ltd. entered into a cooperation agreement to ultimately acquire a 20% stake in a mixed-use project in Beijing's Chaoyang District.
Beijing Zhongrui will carry out the transaction through the acquisition of a 25% interest in Beijing Le You Fu Tuo Investment Co. Ltd., which owns a 49% stake in the company developing the scheme, from Beijing Xuhui Business Management Co. Ltd. for 250,000 yuan and provide the project company with loans of up to 742.0 million yuan.
The 51% stake in Beijing Yuan Chuang Zhong Hui Real Estate Development Co. Ltd. is held by a subsidiary of COFCO Property (Group) Co. Ltd.
Beijing Yuan Chuang is developing the 53,526-square-meter site in Chaoyang intended for residential, commercial and office use. The land parcel, bought for about 3.37 billion yuan, carries a 70-year term for residential use, 40 years for commercial and 50 years for office.
Beijing Capital Land will use its internal resources to fund the capital commitment, according to a filing.
As of May 30, US$1 was equivalent to 6.42 yuan.
