SHANGRI-LA Asia Limited (SA) and Kerry Properties Limited (KPL) have entered into a joint venture through their respective wholly owned subsidiaries for potential real estate development projects in China.
Kerry Properties (China) Investment Co Ltd (KPCI) will own a 55 per cent stake of the joint-venture company, and Shangri-La China Limited (SACL) will own the remaining 45 per cent.
The total amount of the registered capital of the joint-venture company will be 170 million yuan (S$35 million), contributed by KPCI and SACL in proportion to their respective shareholdings.
The maximum total investment amount will be 340 million yuan. Based on this, the maximum contributions of the KPL Group and the SA Group are expected to be 187 million yuan and 153 million yuan, respectively.
‘KPL and SA are currently in the process of identifying potential new real estate development projects involving hotel, commercial and/or residential elements in the People’s Republic of China,’ a joint statement said yesterday.
Source: Business Times, 27 Jan 2010