CentraLand acquires 80 percent stake in Zhengzhou Longma

Mainboard-listed CentraLand has announced that its unit – Henan Hezhi Company – has secured an agreement to acquire an 80 percent stake in Zhengzhou Longma.

Zhengzhou Longma owns two sites out of the four land parcels that comprise Tianrong Fashion City. The two land sites have a total site area of about 12,000 sq m.

CentraLand said it paid 360 million yuan (S$74 million) for the stake, and it intends to redevelop Tianrong Fashion City and its surrounding area into a new commercial development.

According to an independent valuation commissioned by CentraLand, the open market value of the site was 632 million renminbi (S$129.6 million) as of end-May.

CentraLand said the acquisition of the property was funded by the company’s internal resources.