SUNAC China Holdings, a Hong Kong-listed real-estate developer, has announced the acquisition of 51 per cent stake each in two Chinese property developers for a total consideration of 15.27 billion yuan ($2.17 billion), per a company statement.
China will buy the stakes in the two companies – Global Century and Times Global – from YMCI, the state-owned assets supervision and administration commission of Yunnan Province.
YMCI will hold the remaining 49 per cent stake in both companies, per the filing. Sunac said it will finance the acquisitions with internal resources.
Times Global and Global Century are specialized in real estate development, management consultancy, conference, exhibition, and tourism, per the statement.
Since 2003, SUNAC has followed a real estate plus investment and development strategy. Its various divisions include Sunac Real Estate Group (high-end lifestyle properties in China), Sunac Services, Sunac Culture & Tourism Group (family entertainment service operator) and Sunac Culture Group.
With this partnership, SUNAC aims to add more land banks for expansion and also advance its operation management business.