Sunac China Holdings’ indirectly wholly-owned unit Sunac Southwest Group will buy a 51 percent equity interest each in two property firms for about CNY15.3 billion (USD2.2 billion), the Chinese property giant said in a filing with the Hong Kong Stock Exchange yesterday.
Yunnan Metropolitan Construction Investment Group is the current owner of the target firms Global Century and Times Global. The Yunnan Equity Exchange confirmed the deal yesterday.
The company has got its hands on a large patch of high-quality land with good liquidity at a reasonable price via this deal, Sunac China Holdings said.
The company’s shares [HK:1918] rose as much as 2.5 percent in the morning and stood at HKD38.90 (USD4.97) at press time.
The targets mainly develop and run property projects, with 18 under their belts in the southern Chinese cities of Chengdu, Wuhan, Changsha and Kunming, with an aggregate floor area of about 28 million square meters available for sale, or about 90 percent of the total floorage of around 31 million sqm.
Sunac Southwest Group is in full charge of the two target firms and the property projects’ operation and management after the sealing of the transaction. Tianjin-based Sunac China Holdings will thus indirectly control Global Century and Times Global.