Oxley, Lian Beng, Heeton buy 50% stake in Hebei real estate JV for 100m yuan

KAP Holdings (China), a joint venture company that mixes the interests of Oxley Holdings, Lian Beng Group and Heeton Holdings, has invested 100 million yuan (S$20.6 million) to subscribe for a 50 per cent stake in Hebei Yue Zhi Real Estate Development Co, which is incorporated in China.

Subject to the receipt of approvals from the relevant authorities, Yue Zhi intends to carry out real estate development and management for a development project in Gaobeidian, Hebei.

Lian Beng owns 20 per cent of KAP and will invest 20 million yuan in the acquisition, it said in a bourse filing on Tuesday.

Heeton owns 15 per cent and will invest 15 million yuan, it said in a separate filing, while Oxley owns 55 per cent.

Prior to the acquisition, the registered capital of Yue Zhi was 55 million yuan, held by Beijing Jia Hua Hong Yuan Investment Co (82 per cent) and Gaobeidian City Lei Hua Yi Wei Sport Development Co (18 per cent).

KSH International Investment is also adding 45 million yuan to the registered capital of Yue Zhi.

After the acquisition, the registered capital of Yue Zhi will be increased to 200 million yuan.

Yue Zhi had negative net tangible assets of about 148,608 yuan as at Nov 30, 2017.