City Developments (CDL Group) has agreed to buy Sincere Property Group for RMB 4.39 billion ($621 million).
Back in May 2019, CDL announced its intention to invest $1.1 billion in the Chinese real estate developer, a 24 percent stake. The transaction was expected to complete in fourth quarter 2019. But due to a variety of factors, it was not consummated. Hence, CDL did not acquire any equity interest in Sincere Property but had extended the initial tranche of RMB 2.75 billion ($390 million) as an interest-bearing loan in 2019, according to an announcement.
Given the adverse impact of the COVID-19 crisis and the global uncertainty, CDL has taken the opportunity to negotiate new terms for its investment into Sincere Property.
As of April 15, 2020, CDL has entered into a definitive agreement to acquire the 51.01 percent joint controlling interest in Sincere Property. Part of this investm
