[ET Net News Agency, 16 April 2021] Sunac China Holdings Limited (01918) said Sunac
Southwest Group (an indirect wholly-owned subsidiary of the company) and Zhangtai Group
have entered into the cooperation framework agreement. They have proposed to jointly
develop the target projects through the formation of the joint venture. Under which, Sunac
Southwest Group or its designated parties will form a platform company as the joint
venture, and Zhangtai Group and its related parties will then carry out a restructuring of
the target companies by transferring all of the target equity interests into the joint
venture, such that the equity interests of the joint venture will be held as to 80% by
Sunac Southwest Group or its designated parties and as to 20% by Zhangtai Group and its
related parties.
The total capital to be invested by Sunac Southwest Group to the joint venture will be
approximately RMB9.91 billion.
The target companies are mainly engaged in the development of real estate projects in
Guangxi Zhuang Autonomous Region and have developed 57 target projects primarily in cities
such as Nanning and Guilin, including 54 property development projects and 3 property
projects under project management, with a saleable plot ratio-based GFA of approximately
11.62 million sq.m. (RC)