SINGAPORE (March 29): Beijing E-Star Electric Technology, an associate company of Ziwo Holdings, has partnered Chinese property developer Tai Yu Reality to build 160 charging stations for electric vehicles in Tai Yu’s Huizhou City Centre in Huizhou city, Guangzhou, China.

In a release on Wednesday, Ziwo says the latest development marks the start of a “new phase of growth” for the group, which acquired a 45% stake in Estar Investments last month to create an additional income stream amid waning demand for its synthetic-rubber products in China.

Estar is the parent company of Beijing E-Star, which builds charging systems for electric vehicles.

On the other hand, Huizhou City Centre is a 1,200- unit residential development with a total of 1,680 parking lots. Phase 1 of the development recently obtained regulatory approval for homeowners to move in, and is expected to be fully operational before the end of 2017.

Under the agreement, Beijing E-Star will build 90 charging stations will cater to the 980 basement parking lots for the first phase of the development, followed by an additional 70 charging stations for the development’s second phase, which will have 700 parking lots above ground.

All cabling and power requirements for the charging stations will be handled by Tai Yu, which will share all profits generated by the charging stations with Beijing E-Star.

Ziwo says it expects revenue to be generated in the form of electric tariffs, service fees and parking fees, all of which will be paid by users of the charging stations.

Both parties have also agreed to work together to put in place charging stations for Tai Yu’s other residential developments and future projects in China.

“Compared to doing it all by ourselves, working with a developer like Tai Yu allows us to scale up fairly quickly and penetrate cities outside Beijing. This also enables us to generate recurring income, which will self-fund the business even as we roll out in more places,” Tay Wee Kwang, co-founder of Beijing E-Star.

Shares of Ziwo closed 10.3% higher at 3 Singapore cents on Tuesday.