A wholly owned unit of real estate developer Greentown China Holdings Ltd. on March 29 entered into a 293.0 million-yuan sale-and-leaseback deal with CCCC Financial Leasing Co. Ltd. for a hotel asset in China.

Under the agreement, CCCC Financial Leasing will lease the asset to Greentown Financial Leasing (Shanghai) Co. Ltd. for a 24-month period, beginning from the date of its payment for the purchase, and the latter will pay a total of roughly 314.2 million yuan in lease payment to CCCC Financial Leasing in four installments, according to a release.

The ownership of the property will remain with CCCC Financial Leasing throughout the leasing period and transfer to Greentown Financial Leasing once the period has expired. Greentown Asset Management Group Co. Ltd. is acting as guarantor of the deal.

Greentown China expects to expand its financing channel and raise low-cost capital via the deal to fund its business development.

As of March 29, US$1 was equivalent to 6.29 Chinese yuan.