[photopress:Battersea_Power_Station.jpg,full,alignright]This is somewhat odd but interesting. It reads like the opening scenario for a very good novel. An Irish property developer, Treasury Holdings, is best known for its plans to redevelop London’s Battersea Power Station (pictured here) which it bought earlier this year for $800 million.
Now, in July, it will refloat China Real Estate Opportunities with a new portfolio of Chinese property.
Richard Barrett, chairman of Treasury Holdings China, said with perhaps a touch of hyperbole, ‘By the end of 2008, CREO will be the largest western real estate company. China is a fantastic opportunity for real estate with the world’s largest population and fastest growing economy.’
The company will eventually control a development pipeline of more than 50 million sq ft of commercial and residential properties in China, including a new ‘eco-city’ near Shanghai that will take 15 years to build.
Treasury hopes to raise about $520 million when China Real Estate Opportunities re-lists in July. With existing shareholders, this will take the company’s market capitalization to $840 million.
CREO will initially own a property portfolio provided by Treasury with a value of $1,136 million, including one of Shanghai’s largest shopping centers at 1.4m sq ft. It also includes a number of other large office and retail schemes in Shanghai and Beijing.
Treasury plans to inject a second tranche of developments into CREO in 2008, including the proposed 45.2m sq ft new city of Dongtan near Shanghai.
Source: Financial Times