Vibrant Group joint venture buys mixed-use land in China

A JOINT-VENTURE of logistics solutions provider Vibrant Group's subsidiary has acquired a mixed-use parcel of land with a 70-year lease in eastern China for 225 million yuan (S$46.2 million).

The 30,249 square-metre plot is a mixed residential and commercial development site in the city of Jiangyin in Jiangsu province, said mainboard-listed Vibrant in a release issued to the Singapore Exchange on Monday after trading closed.

It was acquired by Master Development (Jiangyin) Co, Ltd The registered share capital of Master Development is 20 million yuan.

Master Development is a 60-40 joint-venture between Vibrant Investment and Management (Shanghai) Co, Ltd and Fengteng International Trading (Jiangyin) Co, Ltd.

Vibrant Investment and Management is a wholly owned subsidiary of Vibrant Properties Pte Ltd, which is a 60 per cent-owned subsidiary of Vibrant Group.

The site will be developed into 508 units of residential apartments and 148 units of commercial units with 400 basement car park lots. It is located at Zhongshan Road in the city, and is strategically situated near hotels, schools, parks, hospitals, other residential districts and office buildings, said Vibrant.

It has a maximum plot ratio of three, or at an average purchase price of 2,479 yuan per sqm per plot ratio.

Vibrant has an effective 36 per cent shareholding interest in Master Development, and the group's share of investment cost will be funded by internal sources, said Vibrant.

Shares of the group closed flat on Monday at S$0.345.