Life of Guangzhou - Guangzhou Donghua to Sell 49% Stake in Property Asset

Guangzhou Donghua Enterprise Co Ltd. which is engaged in property development and commodity housing marketing, on Jun. 29 announced that it will sell a 49% stake in a mixed-use property project to a firm headquartered in Guangzhou, the capital of Guangdong Province, sources reported.

The project, which is located in Yuexiu District, Guangzhou, will start construction at the beginning of next year and will consist of an apartment building with more than 30 stories and some shopping malls. Guangzhou Donghua Enterprise purchased the land for RMB 180 million on Nov. 21, 2008.

The two partners will set up a joint venture to develop the project. Guangzhou Donghua Enterprise will invest RMB 121.38 million and hold a 51% stake, while the other partner will invest RMB 116.62 million and hold the remaining 49%.

Yang Shuping, chairman of Guangzhou Donghua Enterprise, said that the firm is still short of funds to pay for the land transfer. Judging by the cost of RMB 4,000 per sq m in potential floor area, the project will need an additional RMB 200 million at least, Yang added.

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