Hongrun Construction to invest in Mongolian property project
Sep. 15, 2008 (China Knowledge) - Hongrun Construction Group Co. Ltd<002062>, a China-based construction services supplier, announced that it has inked deal worth of US$300 million with Mongolia SFECO Ltd to jointly build the “Ulan Bator City district of Shanghai Hong Run” project.
According to the Chinese company’s announcement, Hongrun Construction and Mongolia SFECO will launch a joint venture named Hongrun SFECO Co. Ltd with registered capital of US$100,000. Hongrun Construction and Mongolia SFECO hold 80% and 20% stake in the new company, respectively, which has already been approved by the Mongolian government.
The property project covers an area of 1 million square meters with total construction area of 600,000 square meters. Total investments involve US$301.52 million, of which 30% will come from the joint venture’s own funds and 70% from bank loans.
The cross-border project is expected to realize revenue and net profit of US$600 million and US$200 million, respectively.
Shares of Hongrun Construction Group climbed 3.53% to RMB 9.68 on Friday.
SOURCE: China Knowledge
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