July 6 (NBD) -- China Pacific Insurance (Group) Co., Ltd. ("CPIC", 601601.SH) announced Friday that its subsidiary CPIC Life Thursday entered into a contract with property developers Shui On Development (Holding) Limited ("SODH") and Yongye Group, under which the parties agreed to form a joint venture (JV) to carry out a real estate development on the target land in Huangpu District, Shanghai.

Upon establishment of the JV, CPIC Life, SODH and Yongye Group will hold 70 percent, 25 percent and 5 percent of the equity interest of the JV, respectively.

Pursuant to the contract, the registered capital of the JV is 14.05 billion yuan (2.1 billion U.S. dollars), and CPIC Life shall make a contribution of 9.835 billion yuan (1.5 billion U.S. dollars) to the JV.

In addition, CPIC Life shall provide shareholders' loans to the JV, which is estimated to be approximately 5.45 billion yuan (821.6 million U.S. dollars).

Email: gaohan@nbd.com.cn