Evergrande Real Estate gets $600 million investment

China’s Guangzhou-based Evergrande Real Estate Group (incorporated in the Cayman Islands with limited liability) has obtained $600 million in investment from several individuals and institutions.

Cheng Yu-Tung, a Hong Kong tycoon and chairman of New World Development Company, invested $150 million – 3.9%
Kuwait Investment Authority invested $146 million, 3.8%
Five investment houses including Deutsche Bank and Merrill added $210 million, 4.4%
$506 million of the total promised investment was paid by June 29, the rest following soon.

Apart from this, Mr. Cheng Yu-Tung, seen here, will also provide RMB780 million for two projects co-launched with the Evergrande Real Estate.

Evergrande Real Estate said that the raised funds will be used mainly for payment of land leasing fees rather than banking loans, and the company plans to open more projects for potential partners.

In addition, the Evergrande is planning to raise money for another three projects in Guangzhou, Chongqing and Shanghai which will involve RMB8 billion for land purchase

Of the company’s 48 projects, three have been opened to other partners, including one in cooperation with Merrill Lynch.

Source: Trading Markets