Shui On Land to Form a JV with Middle East Institutional Investor to Capture New Knowledge Community Opportunities in China
Shui On Land Limited has announced that it has entered into a framework agreement with an institutional investor based in the Middle East (the “Middle East Investor”) to form a US$600 million (approximately HK$4,650 million) joint venture, Shui On KC Investment Partnership, to develop, own, and operate mixed-use knowledge community projects in strategic locations in China.
The joint venture will have an eight-year term, with up to two one-year extensions subject to investor approval. Capital contributions will be made by the Company and the Middle East Investor when a specific project has been identified and the relevant vehicle holding that project established.
Shui On KC Investment Partnership will be the platform through which the Company will invest in new knowledge community projects. Knowledge communities are mid-size, mixed-use projects located in areas characterised by a high concentration of universities, high-tech parks and/or research and development parks.
Mr. Vincent H. S. Lo, Chairman of Shui On Land, said: “I am pleased to announce the formation of the Shui On KC Investment Partnership. This platform will enable us to better capture attractive investment opportunities in knowledge community projects in China. Establishing this strategic partnership with the Middle East-based institutional investor will also broaden the Company’s exposure to global institutional investors with diversified sources of capital and investment horizon”.