China Real Estate Opportunities SA
The Company's principal objective is to achieve capital growth from a portfolio of properties in China. The Board is responsible for the Company's investment strategy and will review it from time to time in line with market conditions.
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China Real Estate Opportunities sells 50% stake in Tangdao Bay development for RMB1.389 billion
China Real Estate Opportunities (AIM: CREO)(“China Real Estate”), the London listed property investment company focused solely on China, announced that it has sold its 50% interest in the Tangdao Bay joint venture development to its partner, SIIC Shanghai Holdings Company (“SIIC”).
China Real Estate will receive RMB1.389 billion for the stake, which is expected to generate net proceeds of approximately £33.8 million for the company at today’s exchange rate. The company said the sale price represented a 10.9% premium to the independent value of the project in June 2009.
“The sale price reinforces CREO's reported NAV, and follows on from the June 2009 disposal of CREO's interest in the City Centre 5 development at an 8.9% premium to the independent valuation of 31 December 2008,” China Real Estate noted.
In relation to the asset disposal, the company no longer intends to move forward with the issuance of zero dividend preference shares, as announced in November 2009. Instead, the company has committed to use £15 million of the net proceeds to undertake a tender offer for its shares.
"The CREO Board is very pleased to announce the execution of an unconditional contract for the disposal of its 50% ownership of the Tangdao Bay development, reinforcing the strength of CREO's balance sheet and underpinning its published net asset value as this sale represents the second asset disposal in the past 6 months above independent valuation,” Ray Horney, Chairman said, “This transaction reinforces the Company's strategy of focussing on its core investment and development assets, particularly in Shanghai, and will further strengthen the Company's cash position and provide a strong platform for the Company to move forward in 2010 and beyond."
Shares in China Real Estate rose nearly 6% on the news.
Other China Real Estate Opportunities SA news
- China Real Estate grows portfolio value 7.35% to £837 mln at end of ‘challenging’ 2009
2010-02-05 - London's only play on commercial real estate in China
2009-10-09
