Analysts yesterday welcomed Guangzhou Investment's agreement with its parent to restructure its property interests as a positive move for the company in the longer term. The listed flagship of the Guangzhou municipal government said it would form a 51:49 joint venture, Super Gain Development, with parent Yue Xiu Enterprises (Holdings), which would have a net asset value (NAV) of more than $3.57 billion. It will inject its property projects in China, with unaudited book NAV worth about $1.82 billion, into the venture while Yue Xiu will contribute projects worth about $1.75 billion in NAV. Yue Xiu's contribution will include its 80 per cent stake in 11 projects with estimated gross floor area of 1.22 million square metres. The balance is held by Guangzhou City Construction and Development Holdings. Super Gain will have interests in commercial and residential development in the mainland with a gross floor area of 2.9 million square metres, mainly in Guangzhou. Yue Xiu will grant an option to Guangzhou Investment to buy all or part of its equity interest in Super Gain at any time. The plan is subject to independent shareholders' approval. An analyst said the move would not bring immediate benefits to Guangzhou Investment in terms of NAV or earnings but would enhance its land bank and flexibility in arranging sales plans. He said the asset swap was conducted on book value instead of market value, which would allow Guangzhou Investment to book an exceptional gain if the property arm was to be hived off.