Shanghai Tunnel Engineering unit invests in Yangpu district land project

Shanghai Tunnel Engineering Co., Ltd. (STEC) announced that its wholly-owned subsidiary, Jianyuan Asset Management, has jointly acquired the land use rights for the Yangpu District N090501 plot in Shanghai with Shanghai Urban Construction Property Development Co., Ltd., an affiliated party. The total land transaction price for this project was 4.3 bn yuan.

The Yangpu District land project has a total investment of 8,280,376,600 yuan. Jianyuan Asset Management and Shanghai Urban Construction Property Development will establish a project company with a registered capital of 2.13 bn yuan (tentative). Jianyuan Asset Management will contribute 852m yuan for a 40% stake, while Shanghai Urban Construction Property Development will contribute 1.278 bn yuan for a 60% stake.

This transaction constitutes a connected transaction as both STEC and Shanghai Urban Construction Property Development are controlled by Shanghai Urban Construction (Group) Co., Ltd. The deal aims to mitigate project risks and secure development rights.