Shimao Property sells $701 million of stock

The sale of a $701 million block of existing shares of Shimao Property, which accounts for 9.5% of the company, allows the company to monetize part of the large share price gains since the listing earlier this year and raise fresh funds for further land bank acquisitions. Shimao Property Holdings is a Shanghai- based property developer controlled by Hui Wing-mau who is ranked the ninth-richest man in China by Forbes magazine.

A source stated, without being specific, that the money raised by Shimao will go towards further land acquisitions. The local media earlier quoted an executive as saying the company will bid for five mainland sites involving a gross floor area of more than 100,000 square metres each in Beijing, Guangzhou, Tianjin, Hangzhou and Changsha.

According to a press report Shimao also signed a memorandum of understanding to buy a prime development site in Beijing for RMB1.4 billion. The site, it is reported, will be used for a luxury hotel, offices, retail units and serviced apartments and will provide a gross floor area of about 210,000 square meters.

Shimao Property was one of the top China real estate picks in a mid-April report by Credit Suisse, who says the company looks set to become one of the fastest growing China property companies.
Source: Finance Asia