In a bid to penetrate the China market, APAC Realty Limited entered into a joint venture (JV) agreement with two Chinese companies – Zhong Zhi Sheng He Real Estate Investment Consulting Co and Bei Guo Tou (Shanghai) Equity Investment and Fund Management Co.
Dubbed ERA Hainan Real Estate Marketing Co, the new JV will conduct brokerage and resale brokerage businesses, as well as establish training for and licensing of real estate agents in Hainan.
APAC Realty noted that the full range of real estate agency service is “similar to those offered in Singapore such as brokerage services covering new sales, resales and leasing in the residential and commercial sectors”.
APAC Realty and Zhong Zhi Sheng He Real Estate Investment Consulting Co will each hold a 40 percent stake in the JV, while Bei Guo Tou (Shanghai) Equity Investment and Fund Management Co will own the remaining 20 percent.
The JV has a registered share capital of 20 million yuan or about S$4 million.
As part of the agreement, “all existing project-sale businesses from Zhong Zhi Sheng He Real Estate Investment will be transferred to the new joint venture”.
With about 50 employees, Zhong Zhi Sheng He Real Estate Investment has been engaged in the business of real estate consultancy and marketing services.
In fact, it has secured the rights to market six upcoming projects by R&F Properties, Agile Group, Country Garden, Vanke, Poly Real Estate and Sunac.
Bei Guo Tou Equity Investment and Fund Management, on the other hand, specialises in investment advisory; equity investment and asset management; business consultancy; and management services. Incorporated in 2013, the company is currently a “shareholder of Clear Water Bay International Information Industrial Park, a high-tech industrial park approved by the Hainan provincial government”.
APAC Realty’s venture into the Hainan comes after the introduction of property cooling measures.
“According to the latest measures, those who wish to buy units in Hainan must provide proof of at least one family member paying taxes or social security for 60 months there. In the central mountainous region, non-local buyers are unable to purchase any property,” revealed APAC Realty in a release.
“Non-Hainan residents aiming to buy homes in any other part of the province must provide proof of at least one family member paying taxes or social security for at least 24 months in Hainan.”
APAC Realty CEO Jack Chua, however, believes the measures will “help ensure a sustainable transaction volume and price appreciation in light of the government’s plan to establish a free trade zone in Hainan by 2020, which will see more international and regional investments in the province’s economy.”
Eugenia Rosaline Shlaen edited this story. To contact her about this or other stories, email email@example.com