Frasers Property has announced that its wholly-owned subsidiary Suzhou Sing He Xiang Management Consultancy Co (SHX) has entered a framework agreement with two joint venture partners for a potential investment in land. SHX will provide funding of around RMB1.6 billion ($337 million) for the investment.
In addition, SHX will enter a loan agreement with one of the partners, extending a bridging loan of RMB1 billion ($210.6 million) to the partner, who will use it towards payments in relation to the proposed investment. The two joint venture partners in the agreement are related entities.
Details of the land and the identity of the joint venture partners were not disclosed, as the proposed investment is by way of a tender and details are currently confidential due to the commercial sensitivities of the tender process.
See also: Mapletree Investments to develop 123,000 sqm flagship commercial project in Greater Southern Waterfront edit url article
If the investment materialises, the parties will enter into a joint venture in relation to a project company to own and develop the land. SHX will acquire an indirect of up to 40% in the joint venture.
Based on pro forma financial statements for the FY2021 ended September, the proposed investment results in a decrease in Fraser Property's earnings per share from 22.6 cents to 22.2 cents.
Shares in Frasers Property closed at $1.18 on Nov 25.
