China Vanke Will Acquire Property Assets From Hangzhou Iron & Steel for USD281 million
Dou Shicong
DATE:  Mar 05 2018
/ SOURCE:  Yicai
China Vanke Will Acquire Property Assets From Hangzhou Iron & Steel for USD281 million China Vanke Will Acquire Property Assets From Hangzhou Iron & Steel for USD281 million

(Yicai Global) March 5 -- Chinese property giant China Vanke Co. will acquire real estate assets worth CNY1.78 billion (USD281 million) from state-owned Hangzhou Iron & Steel Group Co. as part of the latter's efforts to accelerate the divestment of its property business.

The Shenzhen-based firm will take over eight projects spanning five eastern cities including Hangzhou, Jiaxing, Taizhou, Ma'anshan and Zhuji, of which the latter three represent new markets for Vanke.

The deal marks the first time that China Vanke has participated in the reform of state-owned enterprises in Zhejiang province and could form a key part of the company's future development model, said Zhang Hai, senior vice president at China Vanke.

Hangzhou Iron & Steel Group has earmarked the divestment of real estate as a key component of its transformation strategy following provincial government regulations issued in 2016 calling on state firms to exit the real estate sector within three to five years.

Founded in 1957, Hangzhou Iron & Steel Group is an integrated group engaged in diversified industries such as iron and steel, real estate and environmental protection. The company's listed arm posted sales revenue of CNY93.3 billion last year, while net profit was CNY2.5 billion.

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Keywords:   Vanke,Hangzhou Iron & Steel Group,Zhejiang