TEXTILES machinery maker Fong's Industries and curtain-wall contractor Far East Aluminium (Holdings) have joined forces to acquire and develop a site in Beijing requiring a total investment of HK$750 million. The investment cost includes construction costs and the consideration of US$48.84 million in acquiring the land use rights. Announcements from Fong's Industries and Far East Aluminum late last night said that the two companies and their respective subsidiaries had agreed to acquire and develop the 1.29-hectare site. The site, on Finance Street, Beijing, could be developed to give a floor area of some 55,000 square metres and basements with a floor area of not less than 25,000 sq m. Sunshine is the vehicle used by the companies in the acquisition involving Beijing Finance Street Construction and Development Corp (BFSC). Under the agreements between Sunshine and BFSC, the latter will transfer the site to Sunshine in return for US$48.84 million. The price includes costs of land, demolition, and construction of urban facilities and transfer fee. The first payment, 20 per cent of the total, was paid by Sunshine on January 3. The second payment of 20 per cent of the total will be paid on or before March 15, and the third of 10 per cent of the total on or before June 5. The balance will be paid in eight monthly instalments. Upon full payment, BFSC will transfer the formal land use rights it obtained from the provincial government of Xicheng Qu. The formal land use rights of the site can only be obtained on full payment of the land premium by BFSC to the Government. BFSC has been authorised to be responsible for the demolition of buildings and reconstruction in Finance Street. Meanwhile, Fong's and Far East and their subsidiaries have agreed to transfer the one issued share in the capital of Sunshine to another vehicle, Super Ocean. And it has conditionally been agreed that the companies and their subsidiaries will subscribe for a total of 84 additional shares in Sunshine in cash at par. A distribution has been made so that Fong's subsidiary has 35 shares and Far East's subsidiary 10 shares, with the rest will go to other shareholders. It is the intention of Super Ocean to place 15 additional shares. Fong's said it had paid US$3.4 million as an advance, and its total commitment in the project would be about HK$262.5 million. Far East said its total commitment would be about HK$75 million.