FOSUN International Ltd, China's top private-sector conglomerate, may take legal action over a land transfer involving Soho China, one of the country's largest commercial property developers, because it was not given the chance to exercise its right to buy the stake from its partners.

In a statement to the Hong Kong stock exchange yesterday, Fosun, which owns 50 percent of the project, said it has the preemptive right to buy the remaining half of the commercial project located in the Bund area of Shanghai. Soho China said in a statement on Wednesday that it has agreed to pay 4 billion yuan (US$632 million) for 50 percent of the project.

"If such interest cannot be protected, the company shall take all appropriate legal actions to defend its interest," Fosun said.

Soho will buy the 50 percent stake from Shanghai Zendai Property and Greentown China, according to its statement.

The 45,472-square-meter site on the Bund - once Chinese mainland's most expensive real estate - will comprise office, retail, financial and cultural projects.

Zendai bought the plot in February 2010 for 9.22 billion yuan, making it the most expensive piece of property on the Chinese mainland at that time.

By selling its share, Greentown China can replenish its capital.

 

Source:shanghaidaily.com