(Yicai Global) Jan. 9 -- China Merchants Shekou Industrial Zone Holdings Co., a major real estate developer, has invested CNY870 million (USD134 million) to take a controlling stake in a property firm belonging to a state-owned carmaker.
The company will take an 80-percent stake of Dongfeng Motor Corp.'s wholly-owned Dongfeng Real Estate Co. after bidding at a public auction run by Shanghai United Assets and Equity Exchange, the buyer said in a statement today.
Dongfeng Real Estate owns four under-construction real estate projects with an area covering 720,000 square meters, and nine completed properties. Six of the finished works and 1,104 parking spaces haven't yet been sold and have a book value of CNY75 million (USD11.5 million). The firm also has investments in other developments worth CNY190 million, mostly office buildings, shops and apartment buildings.
The buyer hopes the projects, which are mostly in China's Hubei province, will help it occupy a larger market share in the center of the country.
China Merchants Shekou is a subsidiary of China's largest centrally-owned enterprise, China Merchants Group. Founded in 1979, the real estate unit focuses on developing and operating industrial parks and urban communities. As of 2016, it had total land reserves of more than 30 million square meters in over 200 developments.