Evergrande pays HK$7 billion to take over site in Chongqing
Sino Land, TST Properties, Chinese Estates and CCL sell stakes in property project
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.
