Tag Archives: China Developers

China Poly placement to raise 9.6b yuan

China Poly Real Estate Group Co, the country’s second biggest property developer by market value, plans to raise up to 9.6 billion yuan (S$2 billion) through a private placement of shares to fund expansion.

China Poly plans to sell as many as 700 million shares to select institutional investors, and will use the proceeds to fund 12 real estate projects, the company said in an exchange filing.

Chinese developers are increasingly turning to capital markets for fundraising as the government tightens property lending to cool the country’s red-hot real estate market.

China Poly will sell the shares at no less than 17.92 yuan per share, while its parent Poly Group has agreed to buy 100 million to 1.2 billion yuan worth of the new shares, according to the statement.

China Poly, which competes with bigger rival China Vanke and China Overseas Land, estimated in January that its profit jumped by around 50 per cent in 2009, helped by a boom in property sales.

Source : Business Times – 23 Mar 2010

Advertisements

Guangzhou Investment to streamline operations to focus on property biz

Singapore-listed Guangzhou Investment (GZI) said it is proposing to streamline its operations in order to focus on the property business.

The streamlining will involve the separation of its non-property related business and a change of its company name to Yuexiu Property Company.

Following the completion of the reorganisation, Yuexiu will focus solely on the property business.

The other assets currently held by GZI will then focus on the transport business under a unit called GZT.

GZI said the re-organisation will enable it to more effectively capitalize on the robust growth of the domestic property sector in China.

As part of the reorganisation, GZI’s board declared a special dividend of some US$642 million or about S$115 million by way of a distribution in specie of GZT Shares. Continue reading