Mr Lo, the founder of the well-known Shui On Construction and Materials group (Socam), is to list a new Chinese property venture on London’s Alternative Investment Market next month.
The floatation of China Central Properties (CCP) is due for completion on June 15, and aims to raise around £150m.The company plans to specialise in abandoned property developments, mainly in secondary cities. It will initially take over four existing Socam projects in Beijing, Dalian, Qingdao and Chengdu.
It has already secured commitments from investors to subscribe for shares for approximately £101m.
CCP, whose investors include JP Morgan, said that distressed property presents an ‘attractive’ investment model. Already under way, the cycle for completing these half-finished projects is shorter, and costs less money than traditional ‘greenfield’ projects, or previously undeveloped land.
The group has also placed up to $200m of five year convertible bonds subject to its admission to Aim — investors in these include Deutsche Bank and UBS.
Mr Lo, who founded Socam in 1971, is known as a successful long-term investor in Chinese property and will chair CCP. The group will mainly look to develop office space, rather than residential accommodation.
Source: Daily Telegraph UK