KSH, Oxley, Heeton and Lian Beng invest $30 mil in Gaobeidian project developer

By Michelle Zhu / The Edge Singapore | January 24, 2018 9:54 AM SGT
SINGAPORE (Jan 23): KSH Holdings and KAP Holdings (China), a JV between Oxley, Heeton and Lian Beng, are investing RMB145 million ($29.8 million) in the developer of a property project in Gaobeidian in Hebei province in China.
KSH International Investment (KSH II), a subsidiary of KSH, is acquiring a 22.5% stake in Hebei Yue Zhi Real Estate Development, for RMB45 million ($9.3 million).
KAP, which is 55% owned by Oxley Holdings, 20% owned by Lian Beng Group and 15% owned by Heeton, is acquiring a 50% stake in Hebei Yue Zhi for RMB100 million.
After the acquisitions, the registered capital of Hebei Yue Zhi will increase to RMB200 million from RMB 55 million.
Hebei Yue Zhi is a real estate development and management company in charge of the development project in Gaobeidian, Hebei.
Prior to the acquisition, Hebei Yue Zhi was 82% and 18% owned by Jia Hua and Lei Hua respectively. After the acquisitions, Jia Hua and Lei Hua's stakes will be cut to 22.5% and 5% respectively.
Under the agreement, KSH II and Jia Hua will bear the profit, loss and risks relating to Yue Zhi at 20.25% and 28% respectively, while KAP and Lei Hua will bear the respective proportions of 45% and 6.75%.
KSH’s share of the investment for the acquisition will be funded by internal resources and external borrowings, and the transaction is not expected to impact the group’s NTA or EPS for the current financial year ending March 2018.
This article, written by Michelle Zhu, first appeared on The Edge Singapore.