New World China Land, the mainland unit of New World Development, has agreed to buy a majority stake in a property developer in Chengdu for 500 million yuan, marking its first foray into the Sichuan provincial capital.
The firm said it would pay cash for 60 per cent of Chengdu Xinyi Real Estate Development from Chengdu Xinyi Industrial Investment, a Sino-foreign joint venture.
It said the remaining 40 per cent stake would be held equally by Sichuan Zhongshihua Enterprise and Hong Kong's Hing Pang Petroleum Chemicals.
Chengdu Xinyi has a 950,004 square metre site in Chengdu which will be developed into a three million square foot residential-hotel complex.
Construction of the project, at Shuangliu county, will start by the end of June next year when existing structures have been demolished.
New World China Land has also agreed to provide a shareholders loan of 1.1 billion yuan to Chengdu Xinyi. The company will fund the deal internally.