Correct: Yida China to acquire 75% stake in JV with Japanese partner Sumitomo Realty
TOKYO, NNA - Yida China Holdings Ltd., a group arm of the leading Chinese realty developer Yida Group Co., will acquire a 75 percent stake in its joint venture in Dalian, China with Sumitomo Realty & Development Co. for 3.03 billion yuan ($427 million).
Hong-Kong listed Yida China signed a framework agreement with Sumitomo Realty on the acquisition last Saturday, the Chinese investment firm says. It plans to buy all shares its Japanese partner holds in Dalian Qingyun Sky Realty and Development Co.
The deal would allow Yida to take full control of Dalian Qingyun Sky Realty and Development. Yida Group has 25 percent of shares in the joint venture, Yida China said in a statement.
A spokesman for the Tokyo-based developer declined to disclose the details of the deal while acknowledging that it is in talks with Yida China over the share transfer.
Sumitomo Realty and Yida China will go into the final process of signing a sales contract when the Chinese partner can complete a series of procedures in the share purchase, the spokesman added.
In 2013, Sumitomo Realty and Yida Group established the joint venture capitalized at some 3 billion yuan with the same shareholding structure as now to develop condominium complexes in the northern Chinese port city.
The Chinese venture has sold about 400 units since sales launch in 2016 in its plan to build a total of 2,800 units in Qingyun in the city’s Zhongshan District, the spokesman told NNA on Wednesday, adding the local unit is developing housings in line with demand in the local property market.
According to Yida's statement, the joint venture plans to complete sales of all housing units in 2023, which are being developed on a plot of about 96,000 square meter land in the district.