Hutchison Whampoa Limited (00013.HK) (HWL) announced that it has acquired land use rights of the land located at Heizuizi Wharf and the surrounding area, Xigang District in Dalian, Liaoning Province. The land has a gross area of 143,034 sqm and is being acquired for development into residential and commercial properties. The total consideration under the land use rights transfer contract is RMB1.9 billion (HK$2.313 billion).

The project company, Dalian Dalian Property Development Co., Ltd, is indirectly owned as to 50% by each of Cheung Kong (Holdings) (00001.HK) (CKH) and HWL. The initial total investment and registered capital of the project company, both being currently set at RMB1.919 billion (HK$2.336 billion), are expected to be increased to an amount which is the RMB equivalent of US$700 million (HK$5.439 billion) and US$500 million (HK$3.885 billion) respectively.

Such registered capital will be applied towards funding the payment of the land cost, construction costs and other project costs for the development of the land, and is to be injected into JV company Bayswater Developments Limited by way of advances directly made from time to time by the respective subsidiaries of CKH and HWL on identical terms and in proportion to their respective indirect equity interests in the project company.