Greentown, Shandong Express plan property investments

HONG KONG: Property developer Greentown China Holdings Ltd said it may jointly set up property companies with total investment capital of five billion yuan (RM323.43 million) with Shanghai-listed Shandong Expressway.

Its subsidiary Greentown Real Estate and Shandong Expressway had agreed to cooperate in the investment and development of real estate projects in China's eastern province of Shandong, Greentown said in a statement on Feb 10.

Shares in Greentown were 4.2% at HK$9.87 as trading resumed on Feb 10 afternoon. They climbed 10% on Feb 9 after Shandong Expressway issued a statement on the co-operation.

Trading in Greentown shares was suspended briefly in the morning pending a statement.

Greentown said it may buy equity interest in real estate projects developed by Shandong Expressway or its affiliated companies, and the two parties may set up companies jointly for the development of other real estate projects.

Total investment capital for the project companies was tentatively set at five billion yuan, with Greentown Real Estate to contribute 45% to 49% and Shandong Expressway the balance, it added.

Greentown also said it was in talks with a real estate developer related to the proposed acquisition of an investment holding company with interest in a property project in Zhejiang province. It added that no legally-binding agreement had been made. -- Reuters
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