Listed group member Socam is in discussion with its chief shareholder over a US$900 million property venture
Shui On Construction and Materials (Socam) is in talks with controlling shareholder Vincent Lo Hong-sui about the formation of a mainland property venture through an asset and cash injection of up to US$900 million.
The main board-listed building material firm said it was discussing the move with Shui On Holdings, a wholly owned subsidiary of Mr Lo's Shui On Company (which has a 68.5 per cent stake in the listed firm).
It is looking to inject a large Shanghai housing project, Rui Hong Xin Cheng, worth up to US$140 million, into the new company, to be named Shui On Land.
Socam, chaired by Mr Lo, has also proposed paying US$50 million in cash for a 20 per cent stake in Shui On Land.
Shui On Holdings will inject privately held Shanghai property investments worth up to US$370 million, including the Shanghai Xintiandi entertainment district, into the new company.