Shanghai's Yongye Group to sell RMB 241-mln assets
Yongye Group, a Shanghai-based real estate developer, plans to sell an 11% stake in its joint venture (JV) with Orient Overseas Container Line (OOCL) along with the JV's rights of credit, which are worth RMB 5.28 million, for a total of RMB 241 million, according to a statement released by Shanghai Assets and Equity Exchange (SAEE) on Jun. 5.
Yongye currently holds a 12% stake in the JV, which is principally engaged in property development in Shanghai. OOCL, a wholly-owned subsidiary of Orient Overseas (International) Ltd (OOIL)<0316>, holds the remaining 88% stake.
The JV's major asset is a piece of land in Luwan District, Shanghai. On the site, a construction firm is building a five-block apartment project with a total potential floor area of 79,000 sq m and a hotel with a potential floor area of 66,000 sq m. At the end of last year, the total value of the two projects was more than RMB 2.5 billion.
According to the minutes of the meeting of the board of directors held on Mar. 23, the company may expand its registered capital from US$88 million to US$186 million, bringing the two projects' total investment from US$176 million up to US$372 million.
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