You are here
Greenland Group and Amare in multi-billion-dollar property deal
THE Greenland Group, China's biggest state-owned developer, and Singapore-based Amare Investment Management Group have entered into a multi-billion-dollar property agreement.
The agreement, involving over S$4.5 billion of global hotel assets and operations, calls on Amare to acquire Greenland's existing hotel assets in China and overseas. Amare will set up a joint venture with Greenland to manage these hotels. The JV is set to contract out the operations of these hotels to major names in the industry including InterContinental Hotels Group, Starwood, JW Marriott, and the Melia Group.
Greenland Group's chairman Zhang Yu Liang noted the deal is the first collaboration the Chinese group has with a Singapore company.
Mr Zhang said: "(W)orking with a Singapore partner such as Amare, which is led by Mr David Su, who has vast experience in the finance/fund management, real estate, consumer product and retail, as well as the hospitality and entertainment industries, will help us to accelerate our growth plans (in China and overseas)."
"Singapore, with its strong brand name and proven track record as well as its depth of global hospitality and retail professional talent, is a big plus for us," he added.
The deal, which took two years of in-depth negotiation, is premised on Greenland and Amare's interests in stepping up expansion in the real state and hospitality sectors in China and overseas, while domestic property prices come under pressure and values have become more attractive for investment.
Mr Su, who has been active in the private equity sector for more than 30 years, handling multi-billion dollar deals and more than 100 capital market transactions, said the JV partners "are (also) scouting for properties and land in Singapore to build landmark and iconic properties" and "are exploring a couple of sites now".
"We intend to set up multi-billion dollar private equity funds and trust in Asia and establish a regional hub in Singapore to manage our investment activities for Asia," he said.
Mr Su said of the collaboration with Greenland: "This deal, which took two years of in-depth negotiation, is a big win for both Amare and Singapore. Securing this strategic collaboration is testimony of our reputation and track record in asset management and it also underscores the confidence that the Greenland Group has in Singapore and the region."
Greenland, which is listed on both Shanghai and Hong Kong stock exchanges, owns, develops, and manages a variety of commercial, office, industrial, and other buildings worldwide, with a focus on high-rise premium mixed-use complexes and developments with major property investments and developments in London, Los Angeles, Sydney, and Japan.