Sino-Ocean Land raises sales target

Sino-Ocean Land, the Beijing-based developer, is confident of achieving its sales target of 20 billion yuan (HK$22.72 billion) this year despite government policies to cool the overheated property market.

The sales target is 40 per cent higher than the record 14.32 billion yuan generated from the sale of 1.44 million square metres of floor space in 2009. To achieve the 20 billion yuan target, the developer has to sell 1.82 million square metres this year.

'Our contracted sales amount in Beijing so far this year was 30 per cent more than a year ago and our sales target is achievable,' said Adrian Sum Pui-ying, chief financial officer at Sino-Ocean Land.

The company outlook has been clouded by the possible disposal of its shares by China Ocean Shipping Group (Cosco) and the central government's orders to state-owned enterprises last week to get out of the property sector .

Last Friday Cosco president and chief executive Wei Jiafu said the group would sell its indirect holding of about 8 per cent in Sino-Ocean Land within the next six months.

Sino-Ocean Land chief executive Li Ming said operations of the company would not be affected even if Cosco sold its indirect holding.

'I received many inquiries from investors who are interested in buying the shares from Cosco after the news was released,' he said.

Last Thursday the State-owned Assets Supervision and Administration Commission (Sasac) ordered 78 companies to concentrate on their core businesses and leave the real estate market. Sino-Ocean Land was not on the list.

Li said: 'We have shareholders with a state-ownership background. But Sino-Ocean Land is not a state-owned company. We are a Hong Kong-listed company,'

On future development, Li said the company would expand into second-tier cities. 'We have also signed an agreement with Swire Properties to develop a joint-venture project in one city and will disclose the details soon.'

Shares in Sino-Ocean Land dropped 1.93 per cent to close at HK$6.61 yesterday.