Investing RMB 1.4 billion to develop Hengli.Bona Plaza
HONG KONG, April 26, 2011 /PRNewswire-Asia/ -- Hengli Properties Development (Group) Limited (the "Company" or "Hengli", stock code: 169) entered into a joint venture agreement with Yonghui Superstores Co., Ltd ("Yonghui Superstores") to jointly develop and operate the Hengli.Bona Plaza project in Fuzhou City, Fujian Province, the PRC.
According to the joint venture agreement, the total investment is estimated to be RMB 1.4 billion. Hengli will contribute RMB 490 million, which represents 70% of the registered capital, and that Yonghui Superstores will contribute RMB 210 million which represents 30% of the registered capital. Situated in Gulou District of Fuzhou City, Hengli.Bona Plaza takes up an area of approximately 42,125sq.m to develop high-end commercial properties with residential building projects. Hengli.Bona Plaza is close to the Wusi commercial district and the government of Fujian province, with convenient transportation and beautiful landscape. With the Company's projects in the area, namely Hengli City, Hengli Financial Centre and Hengli Chuangfu Centre, the projects will benefit from the allocation of resources and would create a synergy effect.
Listed on the main board of the Shanghai Stock Exchange (stock code: 601933), Yonghui is a renowned brand name in the PRC, operating over 200 large supermarkets in the PRC. Its profit from last year reached RMB 399 million.
Commenting on the cooperation, Mr. Chen Chang Wei, Chairman of Hengli, said "Yonghui is a well-known brand with rich experience in retail properties. Combining that and Hengli's extensive experience in commercial real estate development, we believe it would be mutually beneficial. Forming a joint venture would ensure the strong base of development funds for the project which comply with Hengli's strategy to develop high-end, high yield commercial properties."
About Hengli Properties Development (Group) Limited
Hengli Properties Development (Group) Limited is listed on the main board of the Stock Exchange of Hong Kong Limited (stock code: 169). The Company is principally engaged in the sales and development of property projects, as well as the investment of commercial properties. Currently the key projects of the Company are in Gulou District of Fuzhou city, a Strait West Coast Economic Zone. The Company owns "Hengli City", "Hengli Financial Centre", "Hengli Chuangfu Centre" and "Hengli Bona Plaza".
