Frasers Property has entered into a “strategic alliance framework” with two joint venture partners it did not name, to undertake property development in China.
As part of this agreement, Frasers, via its subsidiary, Suzhou Sing Heng Le Enterprise Development will provide funding of some RMB1.84 billion ($394.4 million).
In addition, Frasers, via another subsidiary, Singlong Property Development (Suzhou) will extend an interest-bearing bridging loan of some RMB1.2 billion to one of the JV partners.
The loan will be up to July 1 and carry an interest of 8% a year.
The two joint venture partners are related entities.
If the investments do materialise, Frasers will own up to 25% of each project.
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Frasers believe that by extending the financial support, it can form a “strategic alliance” with the JV partners and potentially undertake other investments together down the road.
Frasers Property traded at $1.09.
