A UNIT of property developer UOL Group, together with an industry partner, has won a nine billion yuan (S$1.7 billion) tender for a residential site in the Hongkou district of Shanghai, China.
Qin Rui Jia (Shanghai) Realty Co (QRJ), an indirect subsidiary of UOL, teamed up with China Jinmao Holdings Group on a 10:90 basis for the government land sales tender, which closed on Thursday (Feb 20).
The site is 19,319 square metres and has a 70 years leasehold. QRJ and China Jinmao will set up a joint venture company to acquire the land-use rights and develop the site.
UOL Capital Investments, a unit of UOL, will contribute 358.6 million yuan towards the tender price of the site, corresponding to its indirect 4 per cent interest in the joint venture.
The acquisition will expand UOL’s development footprint in China, the company said in its filing. It will be financed via existing funds, external borrowings and proportionate shareholders’ loans.
The transaction is not expected to have a material impact on UOL’s earnings for the financial year ending Dec 31, 2025.
UOL shares ended Wednesday at S$5.12, up 0.2 per cent or S$0.01.
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