Frasers Property said Thursday its indirect wholly owned subsidiary, Suzhou Sing He Xiang Management Consultancy, or SHX, has entered a strategic alliance agreement with a joint venture partner and its related entity for a potential investment in land.
Under the deal, SHX will provide funding of around 1.6 billion yuan, or around S$337 million, toward the proposed investment costs, Frasers Property said in a filing to SGX.
In addition, SHX, among others, will enter an agreement to provide an interest-bearing bridging loan of around 1 billion yuan, or around S$210.6 million, at a rate of 8 percent per annum interest to one of the joint venture partners, the filing said. The loan will be for a term of up to 1 April 2022, the filing said.
The loan will be used by the joint venture partner toward payments related to the proposed investment, Frasers Property said.
“The proposed SHX investment amount towards the proposed investment would enable the group to form a strategic alliance with the
JV partners and potentially jointly participate in other investment opportunities in the future,” Frasers Property said.
If the proposed investment succeeds, the parties will enter a joint venture to own and develop the land, with SHX to acquire an indirect 40 percent interest in the joint venture, the filing said.
Frasers Property did not provide the identity of the joint venture partner or its related entity, or the location of the potential land deal.