Mainboard-listed CentraLand, through its subsidiary Henan Hezhi Company, has entered into an agreement to acquire 80 per cent of Zhengzhou Longma.
CentraLand paid 360 million yuan or about S$74 million for the stake.
Zhengzhou Longma owns two parcels of land out of the four parcels that make up Tianrong Fashion City.
CentraLand intends to redevelop Tianrong Fashion City and its surrounding land into a new commercial development in Zhengzhou city.
The property occupies a total site area of about 12,000 square metres.
Based on an independent valuation commissioned by the company, the open market value of the property was 632 million renminbi or S$129.6 million as at end-May.
CentraLand said the acquisition was funded by the group’s internal resources.
Source : Channel NewsAsia – 25 Jun 2010