Chinese Estate Holdings yesterday announced a private placement of 240 million existing shares in its China concept spin-off Evergo China Holdings which would use the $253 million net proceeds for development of a luxury office project in Shanghai.

The placement price of $1.09 per share represents a discount of 7.6 per cent on Evergo China's closing share price of $1.18 on May 14, the last trading day before the stock was suspended.

The total development cost of the project has been estimated at US$245 million.