(Yicai Global) June 20 -- Chinese landscaper Palm Eco-Town Development Co. [SHE:002431] will inject CNY513 million (USD75 million) into a subsidiary set up to build a resort in the nation’s eastern province of Jiangsu.
Last month the firm won a government-conceded project for an eco-tourism park in Qingshuitan, in Jiangsu’s Gaoyou city. The park will cover 138,000 square kilometers of wetland with a total investment of nearly CNY2.2 billion. The developer hopes to get returns of 7 percent thanks to the 12-year concession, which includes a two-year construction period.
The new company will be a joint venture between Palm Eco-Town and a local tourism firm, Gaoyou Qingshuitan Tourism Investment Co., with the former taking a 95-percent stake and the latter contributing CNY27 million (USD3.97 million) for the remainder.
Palm Eco-Town’s investment into the new park is just over 55 percent of its operating income last year, and it hopes the project will have a positive impact on its earnings results for the foreseeable future.