The loan has a double-digit annual fixed interest rate and a share of sales revenue received from a high-end residential project which is wholly owned and being developed by Top Spring in Hangzhou, China. The residential project benefits from an excellent location by the Fuyang River in a suburban area of Hangzhou and is in close proximity to the city centre. The development will encompass 312,000 sqm of townhouses, villas and apartments for strata-title sale. Construction will start later in 2011 with residential units completed and delivered in several phases between 2012 and 2017.
Stephen Yuen, Chief Executive Officer of the JV, commented: “It is important to choose the right partner when investing in China. Top Spring have years of solid real estate experience in China and have deep knowledge and extensive connections in the market. We are happy to establish a relationship with Top Spring through this mezzanine loan for their project in Hangzhou. We look forward to expanding this relationship to projects in other cities”.
This will be the JV’s first investment with Top Spring in China and the two parties have agreed to explore further co-investment opportunities. Top Spring, listed in Hong Kong in March 2011, is a real estate development company specialising in high-end residential and retail projects. Top Spring has development projects in a number of cities in China including Shenzhen, Changzhou, Hangzhou, Chengdu and Tianjin.