CR Land seeks allies for Qianhai project
Developer sees no need to tap the debt market for funding after earnings rise
China Resources Land (CR Land), which paid 10.9 billion yuan (HK$13.7 billion) for a mega commercial site in the Qianhai special economic zone last week, said it will bring in strategic partners to jointly develop an upmarket office-hotel-serviced-apartment project.
"We are open to both Hong Kong and mainland companies," said chairman Wu Xiangdong.
Given that the land cost could be spread over three years, Wu said, there were no immediate plans to tap the debt market to raise funds. "There is no pressure on our financial position," he added.
Including the cost of land, analysts estimated the total investment in the Qianhai project, which could yield 503,000 square metres in gross floor area, at 21 billion yuan.
We are open to both Hong Kong and mainland companies
Yesterday, CR Land said net profit, including a HK$3.55 billion revaluation gain on investment properties, increased to HK$4.38 billion for the six months to June from HK$3.64 billion a year earlier. Turnover nearly doubled to HK$15.77 billion.
An interim dividend of 7.3 HK cents was announced, a rise of 15.87 per cent from the first half of last year.