UOL unit QRJ and China Jinmao acquire Shanghai residential site for S$1.66B

SINGAPORE: UOL unit Qin Rui Jia (Shanghai) Realty Co (QRJ) and China Jinmao Holdings Group (JM) have secured a residential site in Shanghai’s Hong Kou district for RMB8.96 billion (S$1.66 billion), as reported by Singapore Business Review.

The 19,319-square-metre site with a 70-year leasehold was acquired through a government land tender that closed on Feb 20.

A joint venture company (JVCo), to be established in China by QRJ and JM on a 10:90 basis, will acquire the land use rights for the site and oversee its development, subject to regulatory approvals.

The purchase will expand UOL’s presence in China and will be funded through existing funds, external borrowings, and proportionate shareholders’ loans. 

QRJ is fully owned by Shanghai Jin Peng Realty, a joint venture where UOL Capital Investments (UCI) holds 40%, Singland China Holdings, a unit of Singapore Land Group (SLG), owns 30%, and Peak Star, a subsidiary of Kheng Leong Company (KLC), holds the remaining 30%.

UCI will contribute RMB358.57 million (S$66.4 million) to the site acquisition—an indirect 4 per cent interest in the joint venture.

The residential site acquisition is not expected to have a material impact on the net tangible assets per share and earnings per share of UOL for the financial year ending December 31, 2025. /TISG