Chevalier takes 51pc stake in Hefei project
Chevalier International Holdings, a construction and engineering services firm, has teamed up with two state-owned companies to develop a 750 million yuan commercial-residential project in Hefei, central China.
Chevalier Chengdu, the property investment arm of Chevalier, will take a 51 per cent stake in the project. The remaining stake will be held by Anhui Province Hua Qiao Hotel and Anhui Anxing Lianhe Corp.
All partners will bear the 750 million yuan cost and share the economic interests based on the size of their stakes.
Chevalier Chengdu, which has an initial capital of five million yuan, and the state-owned firms are putting up 112 million yuan and 108 million yuan respectively. The remainder may be financed by external borrowings.
The development project, named Hua Qiao Plaza, is in Chang Jiang Road Central, a main street in Hefei. The complex comprises offices, a hotel, a shopping mall and service apartments.
The majority of the site is owned by Anhui Province Hua Qiao Hotel, which will be transferred to the venture. The remaining development area will be acquired from third parties.
A Chevalier International spokeswoman declined to disclose details of the project as it was in the planning stages.
'The Hefei property market is immature, compared with other Chinese cities. Foreign developers are not active in the city,' DTZ Debenham Tie Leung (Shanghai) assistant director Gary Teng said.
'However, many overseas developers began entering the market soon after Microsoft this year set up a research and development centre, which will continue to stimulate the city's economic development,' Mr Teng said.
Shares of Chevalier International dropped 0.96 per cent to close at $10.30 yesterday.