Wilmar International plans to invest up to 889 million yuan ($175.6 million) in Yingkou City, China to develop three commercial, residential and hotel sites.
The company said it has signed a master joint venture (JV) agreement with Kerry Properties and Shangri-La Asia to develop and manage hotels and properties in the city, following a successful joint bid for a site for about 240 million yuan.
“The demand for quality residential, commercial and hotel property in the second and third-tier cities in China is expected to experience strong growth in the future,” said Wilmar.
“To tap into this growing demand, Wilmar International will leverage on its extensive business affiliation and network throughout China, its knowledge of the local operating environment and understanding of the markets to assist Kerry Properties and Shangri-La Asia to acquire quality land and implement projects in second and third-tier cities,” it said.
Wilmar, Shangri-La Asia and Kerry Properties will have a 35 percent, 25 percent and 40 percent stake, respectively, in the JV. Based on the maximum investment of 2.57 billion yuan, Wilmar will have a total investment of around 889 million yuan.
Wilmar said the JV will be financed through internal sources and bank borrowings. It added that investment for the three sites is not expected to have an impact on the company’s financial position.