A subsidiary of WBL Corporation, or Wearnes, has entered into a joint venture agreement with China firm Suzhou Industrial Park Genway Development, or Genway.
In the deal, Wearnes subsidiary Shenyang Huaxin International Realty Co will acquire a 78 per cent stake in Suzhou Industrial Park Jian Wu Heng Ye Property Development for RMB400 million.
The remaining 22 per cent will be held by Genway, a longstanding joint venture partner of Wearnes in Suzhou.
The acquisition price was arrived on a willing-buyer, willing-seller basis and will be funded by Wearnes internally.
As part of the agreement, Wearnes has paid the first instalment of RMB100 million, with the remaining RMB300 million to be paid in instalments by end December 2010.
The joint venture company owns a piece of land measuring some 147,000 square metre in Suzhou valued at RMB500.1 million (S$101.4 million).
Wearnes said the joint venture will strengthen its position in the residential property market in Suzhou.
Source : Channel NewsAsia – 6 May 2010