China Real Estate Opportunities (CREO), the Treasury Holdings subsidiary, has acquired a 7.21pc stake in RREEF China Commercial Trust (RREEF CCT) which owns a $552 million office and retail complex in the Chinese capital Beijing.
Located in the Chaoyang District of Beijing, the property known as the Beijing Gateway Plaza, is considered a strong performing asset as its 130,000 square metres have achieved an occupancy of over 95%.
Last week CREO purchased an option to acquire up to a 25.65% stake in the Hong Kong-listed real estate investment trust (REIT) which CREO must exercise by mid January.
It is not yet clear whether CREO intends to fully exercise its option or whether this first purchase means that it will exercise less of the other option, given that it is struck at a higher price.
If it should exercise the option this would bring its stake to almost 34% but as this is a REIT, there is no obligation on CREO to make a takeover bid with such a minority stake.
Source: Independent IE