(Reuters) – A joint venture between Singapore Land, UOL Group among others and China Jinmao Holdings has won the bid for the development of a residential site in Shanghai, the Singapore-listed companies said on Thursday.
The parties won the bid from the Shanghai Municipal Bureau of Planning and Natural Resources for a tender price of 8.96 billion yuan ($1.23 billion).
The acquisition comes even as recent data showed that new home prices stalled in China in January, suggesting declining demand in the crisis-hit property sector.
China Jinmao and the joint venture company Qin Rui Jia (Shanghai) Realty will form a new company to acquire land use rights and develop the site, with the former holding a 90% stake.
UOL Group will contribute 358.57 million yuan towards the site tender price to expand its footprint in China, while the venture allows Singapore Land to diversify its property portfolio, according to separate company statements.
Real estate investment firm Kheng Leong Company is also part of Qin Rui Jia.
($1 = 7.2585 Chinese yuan renminbi)
(Reporting by Kumar Tanishk in Bengaluru; Editing by Vijay Kishore)
