[photopress:Huafu.jpg,full,alignright]US property fund Gateway Capital will buy a 50% stake in Zhuhai Huana Real Estate, wholly owned by Huafa Industrial through two of its subsidiaries.
This requires, perhaps, some explanation and positioning. Huafa is based in Zhuhai which borders the Macau Special Administrative Region (north and west), and is 140 km southwest of Guangzhou. Zhuhai was named as one of the first Special Economic Zones. The neighboring city of Shenzhen became the first Special Economy Zone in 1978.
Huafa said in a statement filed with the Shanghai Stock Exchange that the two subsidiaries will transfer their 30 and 20% stakes in Huana Real Estate to Gateway Capital’s wholly-owned unit GCREF Investment I, for a total consideration of RMB240 million.
After the transaction Huafa Industrial and Gateway Capital will each control 50% of Huana Real Estate.
The two companies will put up a further RMB960 million to develop a 111,465 square meter site in southern China owned by Huana Real Estate.