Perennial ups stake in Xi'an Perennial East to 65.7%

PERENNIAL Real Estate Holdings on Monday evening said its subsidiary - Perennial Xi'an Development 2 - has entered into a sale and purchase agreement with Shanghai Summit Group. The acquisition, completed on June 4, sees the property developer increase its stake in Xi'an Perennial Cheng Tou East Real Estate (Xi'an Perennial East) from 51 per cent to 65.7 per cent.

The consideration for 14.7 per cent of shares in Xi'an Perennial East is 90 million yuan (S$18.8 million) and was arrived at a willing-buyer willing-seller basis. The acquisition will be funded through a combination of internal cash and bank borrowings.

Xi'an Perennial East is developing Plot 5 of the Xi'an North HSR Integrated Development, a healthcare integrated mixed-use development. The  plot will comprise mainly  medical/healthcare facilities, hotel and retail, complemented by medical-related amenities, Perennial said. Construction on the site is targeted for completion in 2020.

Perennial shares closed S$0.005 or 0.6 per cent lower at S$0.86 on Monday before the announcement.