Ying Li divests 3.3b yuan stake in Chongqing CBD project

MAINBOARD-listed Chinese property developer Ying Li International Real Estate said on Tuesday that it is selling its stake in a project in Chongqing's central business district to Shengyu (BVI) - part of China Evergrande Group - for 3.29 billion yuan (S$671.9 million).

Under the terms of the deal, slated to close before the end of November, Shengyu will pay 2.77 billion yuan for the Ying Li International Commercial Centre Project and a further 514.7 million of land tender deposits, which Ying Li has already paid for.

Both companies have agreed that Shengyu will repay the outstanding inter-company loans extended to Shiny Profit Group, Ying Li's subsidiary which owns the Chongqing CBD project. A further 520 million yuan remains payable by Ying Li with respect to the company's acquisition of the land parcel. Additionally, Shengyu will take on all existing liabilities of around 898 million yuan in Shiny Profit Group.