Beijing Capital Land Ltd.'s Capital (Tianjin) Property Management Co. Ltd. unit is subscribing for an additional 4.9% stake in a project company that owns a 129,903.4-square-meter site in the Chinese city of Tianjin.
Capital (Tianjin) previously acquired a 19.8% interest in the Tianjin Hefa Real Estate Development Co. Ltd. project company to participate in the development and operation of the land plot. The Tianjin Hefa stake was purchased from Tianjin Zhaosheng Real Estate Co. Ltd., a fully owned unit of China Merchants Shekou Industrial Zone Holdings Co. Ltd.
The updated deal will see Capital (Tianjin) committing a total of 244.9 million yuan of capital as the original party, Tianjin Real Estate Development (Group) Co. Ltd., backed out from the equity interest acquisition. Of the total investment consideration Capital (Tianjin) is injecting into the project company, 9.8 million yuan will go toward the additional stake subscription and 235.1 million yuan will be provided as funding for Tianjin Hefa.
Upon the transaction's completion, Capital (Tianjin) will increase its shareholding in Tianjin Hefa to 24.7%.
As of June 12, US$1 was equivalent to 6.40 Chinese yuan.