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Minmetals unit to reduce stake in JV

Minmetals Land Ltd. unit Minmetals Land (Yingkou) Hengfu Properties Co. Ltd. is planning to reduce its equity interest in Nanjing Kuanglijin Property Development Co. Ltd.

Hengfu Properties and its partners agreed to a capital increase deal whereby it will make a 144,000 yuan cash contribution to the company, while Gemdale Corp. Nanjing Properties Development Ltd., Poly Jiangsu Real Estate Development Co. Ltd. and Jiaxing Jinguang Investment Partnership LP will contribute 8.4 million yuan, 19.4 million yuan and 56,000 yuan, respectively.

Following the capital increase, Hengfu Properties' stake will be reduced to 39.8% from 50.8%, while Poly Jiangsu's stake will increase to 30% from 19%. Gemdale owns 30% of the joint venture while Jiaxing Jinguang has a 0.2% stake prior to the capital increase.

Hengfu Properties will fund its share of the capital increase from its internal resources.

Nanjing Kuanglijin was created to hold the lot No. G25 land parcel in Nanjing City, China, and to construct a residential development across an approximately 208,000-square-meter gross floor area. The joint venture company will deploy the additional investment for use as general working capital.

As of Dec. 14, US$1 was equivalent to 6.61 yuan.