Yanlord acquires additional stake in Shenzhen site for S$343m

SINGAPORE-LISTED China residential property developer Yanlord Land Group said on Tuesday evening that it has acquired an additional interest of 19.9 per cent in Shenzhen Long Wei Xin Investment Co for 1.665 billion yuan (S$343 million) on a willing-buyer, willing-seller basis.

The net tangible asset (NTA) value of the acquisition based on the accounts at end-2016 was about 113 million yuan, Yanlord said. The NTA reflects the historical value of the land.

This increased its interest in Shenzhen Long Wei Xin from 75 per cent to 94.9 per cent. Yanlord's existing 75 per cent stake in the subsidiary - which holds a residential development site in Shenzhen's Longgang district - was acquired in 2007 for 238.7 million yuan.

Yanlord's corporate and investor relations manager Yim Jeng Yuh told The Business Times that the additional stake offered good value as it was below the market price.

Yanlord closed unchanged at S$1.395 before the announcement was made.