(Yicai Global) Oct. 10 -- With an offer of USD330 million (CNY2.18 billion), Tahoe Group Co. [SHE:000732] has won the bid to acquire all equity in and the CNY710 million creditor's rights to Jiangsu Dongheng Haixin Real Estate Co., a property firm indirectly held by Bright Real Estate Group Co.

One of the target's projects is suitable for the future development of high-end residential projects, and this meshes well with Tahoe's strategies, said the acquiring company.

Founded in 2003, Dongheng Haixin was wholly owned by NGS Real Estate (Group) Co. before the deal. The target turned over CNY16.31 million in the first seven months this year, but with net profits a negative CNY2.96 million.

Dongheng Haixin's main assets include the project titled Henghai International Garden Villa located in Dianshanhu township, Suzhou, in southeastern Jiangsu province, which covers 658,000 square meters. Its phase I, phase II and phase III-2 had all been fully developed and basically sold out by last Dec. 31. Covering around 374,000 square meters, the land under development is all slated for residences, including villas and medium- to high-end residential buildings. The saleable area is projected to be around 225,000 square meters, and this project has received grant of the right to use the relevant state-owned land.

Its location near Shanghai Hongqiao Airport confers convenient traffic conditions, while the plot ratio is relatively less satisfying, which is therefore suitable for the yard-based high-end residential products of Tahoe, the firm said. This project expansion is also consonant with Tahoe's strategy of focusing on promising regions such as the Beijing-Tianjin-Hebei Region and the Yangtze River and Pearl River deltas and extruding its tendrils into first-tier cities, the firm said, and will not substantially impact its operating performance.

Bright Real Estate Group Co. wholly owns NGS Real Estate (Group) Co., the target's parent, and the former likewise announced this acquisition. This deal is predicted to bring CNY940 million in annual net profits to Bright Real Estate.