Sunac buys Leg­end’s prop­erty as­sets for $2.1b

China Daily (USA) - - BUSINESS - By BLOOMBERG

Sunac China Hold­ings Ltd plans to buy prop­erty as­sets in­clud­ing debt fromLe­gendHold­ings Corp for about 13.8 bil­lion yuan ($2.1 bil­lion).

Af­ter the trans­ac­tions are com­pleted, Sunac will hold stakes in com­pa­nies that mainly own in­ter­ests in 42 prop­erty pro­jects in 16 cities in­clud­ing Bei­jing, Tian­jin, Chongqing andHangzhou, the com­pa­nies said in a state­ment to the Hong Kong Stock Ex­change on Sun­day. The sites have a to­tal gross floor area of about 18 mil­lion square me­ters.

Sunac said the ac­qui­si­tion sup­ports its strat­egy to in­crease its land bank and mar­ket share in first- and sec­ond-tier cities. Sunac, which is based in the north­ern city of Tian­jin, has long fo­cused on the big­gest cities but has been en­ter­ing more sec­ond-tier cities since last year.

Sell­ing its prop­erty as­sets will en­able Leg­end to fo­cus on sec­tors such as fi­nan­cial ser­vices, health care and agri­cul­ture, ac­cord­ing to the state­ment. The hold­ing com­pany gen­er­ated 3.3 per­cent of its sales in the six months to June from its prop­erty busi­ness, ac­cord­ing to data com­piled by Bloomberg.

HU QINGMING / FOR CHINA DAILY

A worker han­dles an oil con­tainer at the Zhen­hai re­fin­ery in Ningbo, Zhe­jiang prov­ince. The re­fin­ery plans big in­vest­ments be­fore 2018 in re­struc­tur­ing and up­grad­ing its oil busi­nesses.

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