China Property

Evergrande pays HK$7 billion to take over site in Chongqing

Sino Land, TST Properties, Chinese Estates and CCL sell stakes in property project

PUBLISHED : Tuesday, 20 October, 2015, 11:37am
UPDATED : Thursday, 13 July, 2017, 8:25am

Shares of Evergrande Real Estates opened higher on Tuesday after it announced it was paying HK$7 billion to take over a large residential-commercial project in Chongqing from a consortium led by Sino Land and Sino Land’s parent, TST Properties.

Evergrande shares edged up 0.195 per cent to HK$5.14.

The consortium announced on Monday that an agreement had been signed to dispose of the 205,886 square metre site in the southwestern municipality. A residential and commercial property, The Coronation, is being developed on the site, with completion expected in more than 12 years.

Sino Land and TST Properties have agreed to dispose of a 50 per cent stake in the project for HK$3.5 billion. Chinese Estates said it was selling a 25 per cent stake for HK$1.75 billion, and CCL is selling its 25 per cent for the same price.

Sino Land said it expected to book a net gain of HK$480 million while TST Properties said it would make HK$244 million.

Sino Land shares rose 0.157 per cent to HK$12.74, CCL rose 0.948 per cent to HK$2.13 and Chinese Estates was unchanged at HK$18.

Meanwhile, Evergrande Health Industry, a subsidiary of Evergrande Real Estate, announced on Monday it had won a 81,234 square metre site at the Hainan Boao Lecheng International Medical Tourism Pilot Zone for 93.4 million yuan.