Singapore-listed Ying Li International Real Estate on Tuesday said it entered into an agreement with China's Shengyu to sell its stake in unit Shiny Profit for 3.29 billion yuan (S$671.9 million) in cash.
Together with the proposed sale, Ying Li will buy and transfer a land parcel in Chongqing to Shengyu.
Shengyu, part of the China Evergrande Group, will pay 2.77 billion yuan for Shiny Profit, and a further 514.7 million yuan of land tender deposits.
Upon completion of the divestment, Ying Li will benefit from the expedition of the capital recycling process to pursue new ventures, the company said in a regulatory filing.
"With this divestment, we will be able to strengthen our financial position and redeploy our capital to other fast turnaround projects with shorter completion cycle as we continue to seize opportunities in PRC where we believe the growth will remain strong," Fang Ming, Executive Chairman and CEO of Ying Li said in a statement.
Ying Li International Real Estate is the first Chongqing-based property developer to be listed in Singapore. It is engaged in the development, sale, rental and management of commercial and residential properties in prime locations in Chongqing.
Shares in Ying Li climbed 5.3 percent to S$0.16 on the Singapore Exchange.
