C&D International Investment's (HKG:1908) indirect wholly owned unit, Yi Yue, entered into a cooperation agreement with Lianfa Group to jointly develop residential and commercial projects on two land parcels in Xiamen, according to a July 17 Hong Kong bourse filing.
Yi Yue will acquire a 49% stake in the project company from Lianfa Group, which will retain the remaining 51%, with its total capital commitment estimated at 1.20 billion yuan.
The project company acquired the land use rights for the two sites in June for 2.06 billion yuan.
Upon completion of the transaction, the project company will remain a jointly owned entity and will not be consolidated into C&D International's financial statements.