Yanlord Buys 50%-Stake In Shanghai Renpin For Rmb1.7b

Yanlord Land Group has acquired a 50% equity stake in Shanghai Youyou Group’s wholly owned subsidiary Shanghai Renpin for Rmb1.7b ($330m). With this acquisition, Yanlord will gain a 50% ownership of Shanghai Renpin’s 148,363.36 sqm gross floor area prime residential development site in Century Park International Community District. The site has a plot ratio of approximately 2.66 times which translates into an acquisition cost of approximately Rmb22,177 per sqm. Under the terms of the share transfer agreement, Yanlord will complete the payments for the acquisition by end Jul-12.

Significance: The aforesaid acquisition marks Yanlord Land’s foray into one of Shanghai’s most prestigious international community districts. Ideally situated in a prime location and attractively priced, this site will undoubtedly further expand its prime land bank holdings and is expected to contribute significantly to its future growth.