KLW Holdings acquires 45.45% of Mega Sun for RMB85 m

LISTED door manufacturer and investment holdings company KLW Holdings has entered into a sale-and-purchase agreement with Prosperity Real Estate Holdings to acquire a 45.45 per cent stake in Mega Sun Development for RMB85 million (about S$17.7 million).

Prosperity Real Estate Holdings Limited is a wholly-owned subsidiary of Hong Kong-listed real estate player, Prosperity International Holdings (HK) Limited. The acquisition will be funded through proceeds derived from prior fund-raising exercises.

Mega Sun holds a 55 per cent equity interest in China-based Suzhou Jiaxin Real Estate Development Company Limited, which is developing Fu Yuan Luxury Villas in Suzhou; the property features 51 luxurious villa units. The development is expected to be launched some time in the current quarter.

After the proposed acquisition, the group will have a 25 per cent stake in Suzhou Jiaxin through its 45.45 per cent shareholding in Mega Sun.

The proposed acquisition is KLW Holdings' second foray into the real estate business. It acquired a Melbourne property in September.