[photopress:real_estate_soho_china.jpg,full,alignright]Two property developers based in southern China plan to list in Hong Kong next year.
Hengda Real Estate Group, based in Guangzhou, has hired Goldman Sachs, Merrill Lynch and Credit Suisse to manage an initial public offering (IPO) expected to raise about $1.5bn.
Hengda focuses on residential property and has a landbank of 39m square metres.
The official Shanghai Securities News reported that in January, Merrill Lynch, Deutsche Bank and Temasek, the Singapore state investment agency, invested $400m in Hengda as strategic investors, .
Star River, another Guangzhou-based property developer, has appointed UBS and Morgan Stanley to manage a listing expected to raise up to $1bn. Star River focuses on high-end residential property.
The Financial Times reported last month that Excellence, a property developer based in Shenzhen, the special economic zone that borders Hong Kong, is targeting a $1.5bn Hong Kong listing in the second quarter of next year.
Sino-Ocean Land, a residential property developer, in September raised $1.5bn.
Shares in Guangdong-based China Aoyuan Property Group increased 30% on its first day of trading last month after it raised $460m in an IPO.
Also making its debut in Hong Kong last month was Soho China, a Beijing-focused commercial property developer, which raised $1.7bn. One of its concepts is shown in our illustration
Zhang Xin, Soho China’s chief executive, recently told the FT that access to capital was a critical barrier for most Chinese developers, who had little access to bank financing beyond short-term loans for working capital.
Source: Financial Times