Vita to build and manage car parks in China
Vita Holdings Limited of Singapore said it has teamed up with two Chinese firms to develop and manage car park structures and systems in mainland China. Vita said its wholly owned subsidiary, Vita Property Management Pte Ltd, set up the joint venture, Shandong Tada Vita Parking Co., with China City Parking Holdings Ltd and Jinan Heng Ji Tada Auto Parking Management Co., Ltd.
Vita will have a 49% stake in the joint venture company, while China City Parking and Jinan Heng Ji will hold stakes of 45% and 6%t respectively, Vita said in a statement to the Stock Exchange of Singapore on Sept 14.
Both China City Parking and Jinan Heng Ji are controlled by Mr Guo Shou Jin who is the major shareholder of Shandong Tada Auto Parking Co, Limited (TADA), the market leader of auto-parking system in China.
Other shareholders of TADA, which has manufactured and built more than 10,000 parking spaces, includes the state-owned steel conglomerate Shandong Laiwu Steel Group.
Christine Sim, Executive Chairman of Vita, said the first project of the joint venture is located in the prime district of Dalian.
The car park will be operational by early 2007.
Vita will invest US$1.25 million to purchase the land rights for the car park space in a 16-storey building with offices and retail units while both China City Parking and Jinan Heng Ji will invest US$10,000 each and bear the costs of the car park equipment as well as the construction for a 272-lots car park in Dalian.
The Vita group, a diversified group with shipping, property leasing and management and coal trading interests, will finance this investment using internal funds.
It said the transaction is not expected to have any significant impact on the net tangible asset and earnings per share value of the group for the current financial year.
"This joint venture in developing and managing car parks will serve as a gateway for us to enter into the property management business in the worlds fourth largest economy," Sim said.
Both China City Parking and Jinan Heng Ji are controlled by Mr Guo Shou Jin who is the major shareholder of Shandong Tada Auto Parking Co, Limited (TADA), the market leader of auto-parking system in China.
Other shareholders of TADA, which has manufactured and built more than 10,000 parking spaces, includes the state-owned steel conglomerate Shandong Laiwu Steel Group.
Christine Sim, Executive Chairman of Vita, said the first project of the joint venture is located in the prime district of Dalian.
The car park will be operational by early 2007.
Vita will invest US$1.25 million to purchase the land rights for the car park space in a 16-storey building with offices and retail units while both China City Parking and Jinan Heng Ji will invest US$10,000 each and bear the costs of the car park equipment as well as the construction for a 272-lots car park in Dalian.
The Vita group, a diversified group with shipping, property leasing and management and coal trading interests, will finance this investment using internal funds.
It said the transaction is not expected to have any significant impact on the net tangible asset and earnings per share value of the group for the current financial year.
"This joint venture in developing and managing car parks will serve as a gateway for us to enter into the property management business in the worlds fourth largest economy," Sim said.
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