Hutchison Whampoa, Cheung Kong Holdings to sell stake in Extreme Selection for USD 1.16 billion

By IVCPOST Staff Reporter

Oct 18, 2013 12:00 PM EDT

Hutchison Whampoa and Cheung Kong Holdings would each be selling a 50% ownership stake in Extreme Selection. The latter owned the company that developed the Lujiazui Ring Road project. The price tag for the exit was pegged at USD 1.16 billion.

The buyers were HYZL Development Co, HYZL Investment Co and China Everbright subsidiary, Diamond Gate Group. China Everbright said HYZL Development and HYZL Investment would each purchase the 47% stake while Diamond Gate would buy the remaining 6%.

It was in October 2006 when Hutchison Whampoa and Cheung Kong announced that they would be developing real estate in the Lujiazui's financial district in Shanghai. The firms said they would allocate CNY 1.74 billion or USD 285 million for the project. A government website dedicated to Lujiazui revealed that the 31.8 square kilometer district was the home of the regional headquarters of some 64 foreign firms.

In August, the Oriental Morning Post reported that Cheung Kong intended to sell the Oriental Financial Center. This was an office building located in Lujiazui. Asia's wealthiest man, Li Ka-shing, owns Hutchison Whampoa and Cheung Kong Holdings.

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