City Development's subsidiary to shell out US$25m in private equity fund

It eyes real estate assets investment in China.

In a release, City e-Solutions Limited, a subsidiary of City Development, said that the company has committed to make the Investment of US$25 million (approximately HK$195 million) in the Fund, namely BEA Blue Sky Real Estate Fund L.P., by way of a subscription for a limited partnership interest in the Fund.

The Fund is a closed-ended private equity fund structured as a Cayman Islands exempted limited partnership. It is organized for the sole purpose of subscribing for a limited partnership interest in the China Fund.

The China Fund is a real estate private equity fund established for the purpose of making investments in real estate assets and real estate-related assets in Greater China.

The Investment will constitute a major transaction for the Company and is therefore subject to the shareholders’ approval requirements under Chapter 14 of the Listing Rules.

The Company has received a written approval given by the CDL Controlling Shareholders (holding approximately 52.52% of the issued ordinary share capital of the Company) for the Investment Agreements.