Shenzhen Catic Real Estate to raise RMB 2.2 bln
Jun. 5, 2009
Shenzhen China - Shenzhen Catic Real Estate Co Ltd<000043> announced today that it plans to issue up to 260 million shares to two firms for a total of RMB 2.2 billion or RMB 8.94 per share, according to the company's board of directors.
CATIC International Holdings Ltd<0232> will subscribe up to 120 million shares for RMB 1 billion in cash.
In Addition, Shenzhen Catic Real Estate will issue up to 140 million shares worth RMB 1.2 billion to CATIC Shenzhen Co, half in exchange for a 100% stake in a real estate unit that is worth RMB 600 million and half to repay a loan of RMB 600 million.
RMB 700 million of the proceeds will be used for the development of three properties, and RMB 300 million will be used to replenish the company's working capital.
Shenzhen Catic Real Estate will invest RMB 220 million to a mixed-use property project in Ganzhou City, Jiangxi Province. The project, covering land area of 34,200 square meters (sq m), will consist of high-end residences, shopping malls and restaurants and will bring in estimated sales revenue of about RMB 867 million.
The Shenzhen-listed real estate firm will also inject RMB 180 million into a commercial property project that covers land area of 8,500 sq m in Nanchang City, the capital of Jiangxi Province. Upon the completion of the project, the firm will record sales revenue of around RMB 253 million from office buildings, and will lease the project's hotels and other commercial facilities.
The last project, which is located in Kunshan City, Jiangsu Province and covers land area of 82,400 sq m, will cost RMB 300 million during the second and third stages of construction. Sales revenue may reach RMB 1.26 billion.
CATIC International Holdings Ltd<0232> will subscribe up to 120 million shares for RMB 1 billion in cash.
In Addition, Shenzhen Catic Real Estate will issue up to 140 million shares worth RMB 1.2 billion to CATIC Shenzhen Co, half in exchange for a 100% stake in a real estate unit that is worth RMB 600 million and half to repay a loan of RMB 600 million.
RMB 700 million of the proceeds will be used for the development of three properties, and RMB 300 million will be used to replenish the company's working capital.
Shenzhen Catic Real Estate will invest RMB 220 million to a mixed-use property project in Ganzhou City, Jiangxi Province. The project, covering land area of 34,200 square meters (sq m), will consist of high-end residences, shopping malls and restaurants and will bring in estimated sales revenue of about RMB 867 million.
The Shenzhen-listed real estate firm will also inject RMB 180 million into a commercial property project that covers land area of 8,500 sq m in Nanchang City, the capital of Jiangxi Province. Upon the completion of the project, the firm will record sales revenue of around RMB 253 million from office buildings, and will lease the project's hotels and other commercial facilities.
The last project, which is located in Kunshan City, Jiangsu Province and covers land area of 82,400 sq m, will cost RMB 300 million during the second and third stages of construction. Sales revenue may reach RMB 1.26 billion.