C C Land Holdings (01224.HK)announced that its 51%-owned subsidiary, Chongqing Verakin Real Estate Company Limited (Verakin Property) has entered into a capital contribution agreement with Chongqing Xinhua Bookstore Group Real Estate Development Company (Xinhua Bookstore) for contribution of RMB280 million (HK$344.12 million) to the registered capital of Chongqing Verakin Gonghao Land Company Limited (Verakin Gonghao), which is wholly owned by Verakin Property, and for provision of additional shareholder's loans to Verakin Gonghao.

After the RMB280 million contribution, which comprises RMBRMB133 million by Verakin Property and RMB147 million by Xinhua Bookstore, Verakin Gonghao's registered capital will increase to RMB300 million and Verakin Gonghao will be owned as to 51% by Verakin Property and 49% by Xinhua Bookstore.

Under the agreement, Xinhua Bookstore will provide RMB174.654 million HK$214.65 million) to Verakin Gonghao as its share of shareholder's loan.

The principal business of Verakin Gonghao is ownership and development of a land site comprising 2 adjacent land lots in Ludao New District, Bishan County, Chongqing, the PRC with a total site area of 219,000 sqm and permitted GFA of 659,000 sqm. Verakin Gonghao is now proceeding with initial-stage planning of the land site, which is vacant. Construction work is expected to commence in the second quarter of 2012.

Source:chinesestock.org