Greenland Hong Kong Holdings Ltd., a property unit of Chinese state-owned Greenland Holding Group Co., will join with China Resources Land Ltd. to develop land it bought last month for 5.95 billion yuan ($985 million).
The companies will form a 50-50 venture for the site in Shanghai’s Huangpu district, Greenland said in a Hong Kong stock exchange filing yesterday. China Resources will pay $1 for the stake and assume half the project costs.
“The strategic alliance between the company and China Resources in the project will enable the group to have more flexibility in deploying its financial resources,” Greenland said in the filing.
Greenland can build as much as 245,550 square meters (2.64 million square feet) of commercial, office and residential floor area on the 64,980-square-meter site, according to a Hong Kong exchange filing on Dec. 11. Greenland is based in Shanghai, which is the primary focus of its development.
The land is in “a prime location” and the project will generate “stable investment income,” the company said last month.
Greenland rose 3.4 percent to HK$5.54 in Hong Kong yesterday, before announcing the venture plans. China Resources, based in Hong Kong, gained 1.5 percent to HK$19.82 and has risen 3.1 percent this year.
Greenland sold $700 million of 4.75 percent notes due in 2016 in October to refinance current borrowings and fund projects. The company said in November that it bought office-use land in Nanning, Guangxi province.
China Resources is controlled by state-owned China Resources Holdings Co., which invests in industries including power generation, cement production, real estate and finance.