SHIMAO Property (00813.HK) said that it has agreed with certain enterprises in Hong Kong and Taiwan, which are independent third-parties, to establish the JV company, Straits Construction Investment (Holdings) Limited, for the purposes of engaging in the business of investment, development and operation of property projects in the PRC and Taiwan.

The JV company is owned as to 49% by Shimao Property and 51% by such third-parties.

The total capital contribution and advance to the JV company by Shimao Property (excluding guarantees given by Shimao Property as security for banking facilities of the JV company) was approximately US$161.7 million.

The total liabilities of Shimao Property under guarantees given as security for banking facilities of the JV company before the giving of a guarantee for banking facilities of the JV company were up to a maximum amount of US$73.5 million. The guarantee, which has been given to the relevant lenders as security for banking facilities to be granted to the JV company increased such maximum liability of Shimao Property up to US$220.133 million.