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GSH Corp to pay 200m yuan for 30% stake in food logistics company
REGIONAL property developer GSH Corporation announced that it will invest 200 million yuan (S$40.6 million), for a 30 per cent stake in Henan Zhongyuan Group.
Based in Zhengzhou, the capital of Henan province, Henan Zhongyuan Group owns a food logistics and warehousing hub which has a total lettable area of more than 350,000 square metres of cold storage, food warehousing, and retail space. It is one of the largest of its kind in China.
Located in central China, Zhengzhou is a major trading and distribution centre, with its good connectivity to the rest of the country due to its linkages with major highways and train routes.
Gilbert Ee, CEO of GSH, said: "Investing in Henan Zhongyuan will help to diversify and balance our existing hospitality, commercial and residential property portfolio, in Singapore and Malaysia and will also enable GSH to have a strong recurring income in a high growth industry.
"The investment creates the platform for GSH to launch into China's real estate market."
GSH Corporation last traded at S$0.32 on Wednesday.