shareholder China Real Estate Corp. Ltd. won the bid for a 518,452-square-meterland parcel in Chongqing, China, at a price of around 4.53 billion Chinese yuan.
The companysaid its unit, Greentown Real Estate Group Co. Ltd., agreed on a deal withChina Real Estate for the joint development of the New North Zone land parcel.Greentown Real Estate will own 35% of the joint venture company Chongqing CCCGGreentown Property Development Co. Ltd., while China Real Estate will own theremainder.
Bothparties plan to develop residential and commercial properties for the ChongqingCentral Park Project.
ChinaReal Estate won the bid for the property from the Chongqing Land, Resources andHousing Authority. As of April 29, the company has paid more than 2.26 billionyuan for the land, with the remaining amount to be paid by Dec. 30.
ChongqingCCCG Greentown will seek external funding to pay the remainder of the landconsideration. Greentown Real Estate and China Real Estate will shoulder thecosts on a 35/65 basis if the project company fails to raise enough funds.
ChinaReal Estate is a subsidiary of China Communication Constructions Group (Ltd.)and as of April 29, China Communication and its subsidiaries own approximately28.895% of Greentown China's issued share capital.
As of April 29, US$1 wasequivalent to 6.48 Chinese yuan.