Perennial Real Estate Holdings, through its joint venture firm Perennial HC Holdings, has won the tender to develop two plots of land in Yunnan, China, at a land tender price of ¥341.5 million.
The plots of land are next to the Kunming South High Speed Railway (HSR), and the investment to the joint venture will be funded through equity capital calls from shareholders of the joint venture vehicle, Perennial said. The tender was awarded by the People’s Government of Chenggong District, Kunming.
The plots of land have 40-year commercial land use rights with a total land area of 65,054 square metres. Total maximum allowable gross floor area is 627,600 square metres. The integrated development will be developed into a regional healthcare and commercial hub that will comprise of medical care, eldercare, hospitality, meetings, incentives, conferences and exhibitions, and retail components.
Perennial owns a 45% stake in Perennial HC. The firm said in the statement that the tender aligns with the joint venture firm’s strategy to acquire, own and develop HSR healthcare and commercial integrated developments in Tier 1 or strong Tier 2 cities and provincial capitals in China with good connectivity to transportation hubs.
The firm added that the above transaction is not expected to have any material impact on the net tangible assets, or earnings per share of the company for the current financial year.
Perennial shares rose 0.83% or S$0.005 at S$0.60 minutes into trading on Thursday.