Wilmar International has announced that it has finalised a joint venture (JV) to develop six sites in China.
This comes following a separate successful joint bid with Shangri-La Asia and Kerry Properties for the sites in Laobian District, Yingkou City, Liaoning Province, China for 1.35 billion yuan.
WCA Pte Ltd (WPL), a wholly-owned subsidiary of Wilmar, has entered into a master joint venture agreement with a unit of Kerry Properties, Kerry Properties (China) Ltd (KPCL), and Shangri-La Asia’s subsidiary, Shangri-La China Ltd (SACL). Under the deal, they will set up one or more JV companies to carry out the development, operation, sale, leasing and property management of the project sites.
The shareholdings of KPCL, WPL and SACL in the JV will be 40 percent, 35 percent and 25 percent respectively.
Based on the maximum total project investment of 7.51 billion yuan, the investment of WPL is around 2.63 billion yuan. Wilmar said funding for the JV will come from internal sources and bank borrowings.
The master JV agreement and the setting up of the JV companies are conditional on the necessary shareholder approvals, regulatory approvals and all necessary approvals from relevant Chinese authorities.