China Central plans GBP150m AIM flotation

China Central Properties said it planned to raise about GBP150 million (HK$2.32 billion) from a flotation on the London Stock Exchange's AIM Market.

The company, a recent spin-off from Shui On Construction & Materials (Socam), specialises in distressed property projects in the mainland and has a portfolio of five partially completed commercial and residential projects in Beijing, Chengdu, Dalian and Qingdao.

China Central said it had placed up to US$200 million worth of five-year convertible bonds subject to admission by the AIM.

Socam - controlled by Vincent Lo Hong-shui - and its investment partners JP Morgan Chase, US hedge fund Spinnaker Capital Group, Hong Kong fund Value Partners, V Ventures Group, and mainland conglomerate Yida Group, plan to transfer the five projects to China Central in exchange for shares when it lists on London's second board.

China Central said it had already secured commitments from investors for about #101 million worth of shares.

That tally includes Socam, which has agreed to subscribe to about 30 per cent of the new shares.

The Hong Kong-based builder also said it had agreed to subscribe to 25 per cent of the convertible bonds.

The notes are due in 2012 and are convertible into fully paid shares within the specified period, initially at a 34 per cent premium to China Central's issue price.

Fund-raising and AIM admission is due to be concluded by June 15.