Shenyang Huaxin International Realty Co Ltd (SHIR), a subsidiary of WBL Corporation Limited (Wearnes) has entered into a RMB 400-million joint venture agreement to acquire a 78-percent interest in Suzhou Industrial Park Jian Wu Heng Ye Property Development Co Ltd.
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The agreement was made with the Suzhou Industrial Park Genway Development Group Co Ltd (Genway Group), which will hold the remaining 22 percent of the stake.
The company to be acquired owns a 147,238-sq-m land plot located in Qingjianhu, Suzhou, which Jiangsu Renhe Assets Appraisal Co, Ltd. valued it to be worth RMB 500.118 million.
The acquisition price was made through a willing-buyer, willing-seller basis and will be funded internally. Wearnes will pay the amount in four equal installments of RMB 100 million each.
Wearnes said that the acquisition will enhance the company’s presence in the residential property market in Suzhou and at the same time, capitalizing on its reputation to build property as a core business in its growth strategy.