A joint venture led by Dexin China Holdings Co. Ltd. agreed to invest 1.08 billion yuan into a real estate project company in Hangzhou, China.
Dexin China on Oct. 24 announced a two-step agreement with Hangzhou Douding Corporate Management Consulting Co. Ltd. and Sunny Fond Investment Ltd. to invest in the project company, which plans to acquire the land use right of a land parcel in Hangzhou, China.
Under the first step, Dexin Real Estate Group Co. Ltd. and Hangzhou Douding will invest 335.1 million yuan and 344.9 million yuan into Hangzhou Kaiding Corporate Management Co. Ltd. to boost its capital to about 680 million yuan. As a result, Dexin Real Estate and Hangzhou Douding will own 50.75% and 49.25% stakes, respectively, in Hangzhou Kaiding.
In the second phase, Hangzhou Kaiding will invest 1.08 billion yuan into Sunny Fond's subsidiary Hangzhou Junxing Properties Co. Ltd. for a 67% ownership stake. Sunny Fond will own a 33% stake in Hangzhou Junxing following the investment. Hangzhou Junxing has become the transferee of the land use right of the parcel of land in Hangzhou but has yet to acquire the land use right.
Further, Hangzhou Junxing will become a Chinese-foreign equity joint venture following the transaction.
As of Oct. 24, US$1 was equivalent to 7.07 yuan.