China Vanke Co. (2202.HK) has agreed to set up two investments funds with units of China Merchants Bank Co. (3968.HK) for consolidating the commercial properties of the Chinese real-estate developer.
China Vanke said after markets closed Monday that it will contribute a combined 5.03 billion yuan ($730.4 million) in the two funds, which will in turn acquire mature commercial property projects held by the Hong Kong-and Shenzhen-listed developer.
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China Vanke will hold a 39% stake in each of the funds while China Merchants' units will hold a combined 61% interest.
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May 22, 2017 22:01 ET (02:01 GMT)