[photopress:Poly.jpg,full,alignright]Poly Real Estate Group, China’s largest state-owned developer, is planning to raise as much as RMB19.42 billion ($2.52 billion) through a new share sale to fund nine real estate projects in seven Chinese cities.
The Guangzhou-based company may sell as many as RMB350 million shares at RMB55.48 apiece. Citic Securities will manage Poly’s share sale, which will start on August 1.
The nine projects, three in Guangzhou and one each in Foshan, Beijing, Shanghai, Wuhan, Shenyang and Chongqing, are mainly residential developments and are estimated to receive a combined investment of RMB13.4 billion.
In a statement filed with the Shanghai Stock Exchange, the company said the sites, which measure a combined 408,374 square meters, will be developed into residential projects.
At the end of June the company won auctions for three sites in Shanghai’s Baoshan District for a total of RMB3.24 billion.
Real estate developers in China have been seeking funds to expand their portfolios across the country as the domestic property market has boomed. The National Development and Reform Commission said recently on its Website that housing prices in the country’s 70 major cities surged an average 7.1 percent last month from a year earlier.
However, government action has seen that finance for property developments in China has been harder to come by over the past six months.
Source: Shanghai Daily