The Browns Group yesterday entered into a joint venture (JV) agreement with a Hong Kong-based investment company to construct a US$ 70 million shopping mall and leisure centre at the current Excel World entertainment park premises.
In a stock market disclosure, Browns Investments PLC said that it entered into a JV with Zhong Tian Ding Hui (Pvt) Ltd, for investment in Browns Group’s currently fully owned subsidiary Excel Global Holdings (Pvt) Ltd.
Brown’s shareholding in Excel Global Holdings is currently valued at US$ 20 million. This will be supported by a further US$ 15 million in capital infusion from Browns, which will own 51 percent of the shareholdings in the JV, after Zhong Tian Ding Hui invests US$ 35 million to acquire 49 percent of the shares.
Browns will also arrange for a US$ 20 million loan for Excel Global Holdings.
Following the completion of the US$ 70 million shopping mall and the leisure centre, the JV will begin the second phase, which will include be a mixed development project.
Lease hold rights for the property are held by Millenium Development (Pvt) Ltd.