Ever Glory United Holdings’ wholly-owned subsidiary Ever Capital has entered into a joint venture (JV) agreement with Primest Land and Sunlit Venture Capital to purchase a piece of District 14 land through Primest Land V1, the JV company.
Primest Land V1, which is in the land purchase process for the development and construction of residential flats, will be engaged in the business of acquisition, development, marketing, holding, leasing, sale and disposal of the property.
The JV company has an initial issued and paid-up capital of $1 million comprising 2 million ordinary shares, with Primest Land, Ever Capital and Sunlit Venture Capital holding a 50%, 25% and 25% stake, respectively.
The estimated costs and expenses to be incurred by the JV company in completing the project to its full completion amounts is expected to amount to approximately $30 million, of which 40% or $12 million will be funded by the three parties proportionate to their respective shareholding interests in Primest Land V1. The remaining 60% or $18 million will be funded by bank loans.
As such, Ever Capital’s estimated aggregate consideration value will amount to some $3 million, which Ever Glory United intends through internal resources.
The company says the JV agreement is in line with its strategy to expand into the property investment business and represents an opportunity for an additional revenue stream.
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The JV company is not expected to have any material impact on the company’s net tangible assets (NTA) or earnings per share (EPS) based on its accounts for the FY2023 ending Dec 31.
Shares in Ever Glory closed 1 cent higher or 2.78% up at 37 cents on Dec 6.
