Yuexiu Property Co., a real estate developer controlled by the city government of Guangzhou, China, said its unit’s joint venture bought land in Wuhan for 9.01 billion yuan ($1.5 billion).
Guangzhou City Construction & Development Group Nansha Co., 95.5 percent-owned by Yuexiu, paid 20 percent of the 2 billion-yuan deposit for the site and will take an 8 percent stake in the project company, according to a Hong Kong stock exchange filing yesterday.
Yuexiu’s venture partner, Guangzhou Yuexiu Renda No. 4 Business Investment Enterprise LP, paid the balance of the deposit and will own 92 percent of the project company, Yuexiu said. Yuexiu’s parent owns a 49.7 percent stake in Yuexiu Renda, according to the filing.
The venture can build 956,657 square meters (10.3 million square feet) of residential and commercial floor area on the 147,240 square-meter site in Wuhan’s Jianghan district, according to the filing and a separate e-mailed statement. Wuhan is the capital of central China’s Hubei province.