The Wall Street Journal-20080116-Guangzhou Investment Co-- Stake in Property Venture Will Be Sold to GZI

Return to: The_Wall_Street_Journal-20080116

Guangzhou Investment Co.: Stake in Property Venture Will Be Sold to GZI

Full Text (108  words)

Guangzhou Investment Co. said yesterday it plans to sell its stake in a property joint venture to GZI Real Estate Investment Trust for 677.3 million Hong Kong dollars (US$85 million). The property joint venture, Guangzhou Jieyacheng Properties Co., owns a majority stake in a commercial building in Guangzhou city in China's southern Guangdong province. Guangzhou Investment didn't provide the size of the stake that was sold to the property trust. Guangzhou Investment said GZI REIT will pay HK$203.2 million to the company by issuing 65.97 million new units at HK$3.08 each, which is equivalent to the REIT's closing price Monday. The remaining amount will be paid in cash.