China Merchants Land Ltd.'s Merchants Nanjing Real Estate Co. Ltd. entered into a joint development deal with Nanjing Vanke Zhiye Co. Ltd. to develop a 130,656.0-square-meter site in China.
According to the agreement, Nanjing Vanke will transfer 14.28% of its 71.44% interest in the owner of the land, Nanjing Huihe Zhiye Co. Ltd., to Merchants Nanjing in the amount of 806.3 million yuan. In total, Merchants Nanjing will have an approximately 1.36 billion yuan financial commitment to Nanjing Huihe based on the group's estimate that the land owner's total investment is at 9.50 billion yuan.
Nanjing Huihe's land is in Nanjing City, Jiangsu Province, in the mainland. The site is zoned for residential and commercial use, for respective terms of 70 years and 40 years. Through the deal, Merchants Nanjing and Nanjing Vanke will be able to construct a project on the site and share the profits that the project will bring in proportion to their respective shareholdings in Nanjing Huihe.
As of Dec. 8, US$1 was equivalent to 6.62 yuan.
