Singapore-listed property group City Developments Limited’s (CDL) wholly-owned subsidiary, CDL China Limited has entered into a strategic partnership with China Vanke Co., Ltd (Vanke), one of China’s largest real estate developers.

The partnership will see a partial divestment of CDL China’s interests in two projects located in the Yuzhong District of Chongqing: 70% of Chongqing Huang Yuayuan and 50% of Eling Residences. The transaction is valued at RMB986 million (S$202 million), and is expected to be completed by December 2017, subject to the fulfilment of certain conditions.

Following the partial divestment, CDL China will continue to retain a 30% stake in Chongqing Huang Huayuan and 50% equity stake in Eling Residences. The strategic partnership will see both projects being jointly developed and managed by CDL China and Vanke.

Chongqing Huang Huayuan is a mixed development which sits on a site area of 23,512 sqm with total gross floor area of 121,151 sqm. The prime site is centrally located in the Yuzhong District between two core CBDs - Jiefangbei and Jiangbeizui, with views of the Jialing River and Jiangbeizhui city. The design of the development is currently under review by the joint venture (JV).

Eling Residences is a completed 126-unit luxury residential development designed by internationally renowned architect Moshe Safdie located at the peak of Eling Hill in the Yuzhong District. Its prime location offers panoramic views of the Yangtze and Jialing Rivers. Going forward, the JV entity will manage the sales and marketing efforts for the project.

“This partial divestment is in line with CDL’s strategy of recycling capital for our expansion plans,” says Mark Yip, CEO of CDL China. “We are actively exploring new acquisitions and investments to grow our presence in China.”