Frasers Property has entered a strategic alliance with a Chinese company to acquire plots of land in China and is providing a total of RBM3.04bn (€435m) in initial funding and bridging loan for the venture.
Frasers’ subsidiary, Suzhou Sing Heng Le Enterprise Development, will provide funding of about RMB1.84bn to the unnamed Chinese partner towards the costs of the proposed investment, according to a company stock exchanging filing.
Additionally, another Frasers subsidiary, Singlong Property Development, will advance an interest-bearing bridging loan of RMB1.2bn to the joint venture partner.
Frasers said: “The company is of the view that the provision of the proposed investment amount towards the proposed investment would enable the group to form a strategic alliance with the joint venture partners and potentially jointly participate in other investment opportunities in the future.”
If the acquisitions materialised, the partners would proceed to set up joint ventures that would own and develop the land plots, the company said.
It said that its subsidiary Suzhou Sing Heng Le would have a 25% interest “in each of the joint ventures”.
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