(Yicai Global) June 30 -- China Vanke and Shenzhen's subway operator, which happens to be the property firm's largest shareholder, will explore ways to build infrastructure nearby public transport stations to advance development in southeastern China.
Vanke and SZMC penned an agreement to establish a 50:50 joint venture to explore transit-oriented development in the Guangzhou-Hong Kong-Macau Greater Bay Area and other key cities, the Shenzhen-headquartered real estate company said in a statement yesterday. Each of the parties will put down CNY500 million (USD70.6 million).
Forming the JV will create win-win results for both of the parties, the statement added. SZMC holds nearly 28 percent of Vanke's shares, it disclosed.
The two companies have already secured some land use rights. In April, Vanke's local unit and Shenzhen Metro Property Group paid about CNY5.2 billion (USD735.2 million) to reserve some commercial land in Guangdong province's Foshan.
Vanke's Shenzhen-listed shares [SHE:000002] rose 0.15 percent to CNY25.96 (USD3.70) this morning.
Editor: Emmi Laine