China-based property developer Yanlord Land is tying up with the property unit of Government of Singapore Investment Corp (GIC) to set up a US$300-million joint venture company to develop a residential project in Chengdu, China.
Yanlord has announced that it has set up a JV company – Yanlord Property Investments – with GIC Real Estate’s affiliate. It owns a 25 percent share of the Singapore-incorporated JV, while GIC Real Estate owns the other 75 percent stake.
Yanlord Property Investments also collaborated with the wholly-owned Chengdu unit of Yanlord Land to establish Yanlord Real Estate (Chengdu) – a new JV company located in Chengdu. The Chengdu unit of Yanlord Land owns 60 percent of the JV Company, while Yanlord Property Investments holds the remaining 40 percent stake.
Yanlord Real Estate (Chengdu), which has a registered capital of US$300 million, is set to build a major residential project at Panchenggang in the Jinjiang District of Chengdu, said Yanlord. The project is planned to have a gross floor area of around 390,658 sq m.
GIC Real Estate will own a 30 percent stake in the project, while Yanlord Land will have a 70 percent stake.
The project is strategically located along the second ring road of Chengdu City and is close to the city’s major attractions like Tazishan Park and Sha River. It also lies five kilometres from Tianfu Square – the Central Business District of Chengdu.
Yanlord Land said the project is likely to build on the previous successes of the group in the area – the high-end residential project Hengye Star Garden and the Hengye International Plaza commercial development. It will also complement its most recent integrated commercial development – Yanlord Landmark.
Yanlord Land also said that the proposed deal will not likely have a material effect on the company’s earnings per share or net tangible assets for the fiscal year ending 31 December 2010.