Hong Kong-based departmental stores to infrastructure company New World Development is purchasing a 65 percent stake in a site in Guangzhou.
New World Development acquired its stake in the project for construction of a residential and commercial complex measuring up 290,000 square metres of gross floor area, from Chinese urban rail transit system operator Guangzhou Metro Corp.
Under the terms of the deal, New World will pay over 4.78 billion yuan ($693 million) to Guangzhou metro with nearly $43.5 million to be paid for acquisition of the equity stake and the remaining $643.7 million committed for an assumption of shareholder’s loan.
As a result of the deal, Guangzhou Metro will retain the remaining 35 percent stake in the project, as the two parties agree to jointly develop the project. The commercial section of the development will be finished by the end of May 2022 and the retail mall should be launched within one year after the commercial component is completed.