CIFI (00884) forms JV to develop Suzhou residential site

    CIFI Holdings (00884) said it entered into a cooperation agreement with Henderson China Properties Limited, Eastime Investment and HC Jiangsu Development Limited for the formation of a joint venture to develop a site situated at Xushuguan Development Zone, Suzhou National Hi-tech District, Suzhou.
  HC Jiangsu, which is wholly owned by Eastime Investment, holds the land use rights in respect of the site and will establish a project company in the PRC for the development of the site. The project company will have a registered capital of US$240 million.
  CIFI Holdings will subscribe for one new share proposed to be issued by Eastime Investment at consideration of US$1. Each of Henderson China and CIFI Holdings had provided a shareholder's loan of about Rmb359 million to Eastime Investment, and is committed to provide a further of Rmb395 million by way of further shareholder's loan to Eastime Investment which will be used for capital injection into the project company. Eastime Investment will then be the joint venture vehicle which will be owned as to 50% by CIFI Holdings and 50% by Henderson China.
  The site has a total site area of 171,334.4 square metres and planned gross floor area of 394,069.12 square metres. It has a term of 70 years for residential use.