Shanghai Greenland Group, the builder of mainland China's third-tallest tower, said it is planning to list a unit in Hong Kong this year as it seeks to enter the US property market.
The state-owned developer will set up a subsidiary in Hong Kong, which will include some of its assets abroad, and list the unit on the Hong Kong stock exchange this year, said chairman Zhang Yuliang, without giving a timetable. Zhang declined to say how much money the developer is looking to raise in the initial public offering of the unit that will focus on doing business in foreign countries.
Shanghai Greenland, which announced a A$480 million (HK$3.86 billion) redevelopment in Sydney last week, plans to invest in hotel and residential projects on the west coast of the US and expects to complete the deals by the end of the year, Zhang said.
The firm joins other Chinese developers, including China Vanke, entering the US as the government puts curbs on residential property at home.
"We will invest in countries where Chinese people go to the most; we are looking for a Chinese market that's extended abroad," Zhang said, citing growing numbers of Chinese buyers. "We have strong brand awareness among Chinese customers and know well about what they really want."
Vanke, the biggest developer listed on mainland exchanges, has entered a residential-property venture in San Francisco with Tishman Speyer Properties, while Xinyuan Real Estate is developing a New York project.
Shanghai Greenland expects overseas revenue to reach as much as three billion yuan (HK$3.71 billion) this year and the portion accounting for total revenue to grow "steadily" each year, Zhang said. The developer targets property sales of 150 billion yuan this year, a jump of 39 per cent from last year.
It invested in a mixed-use project, including hotels, shopping malls and water amusement parks, in Jeju in South Korea, and in a hotel in Frankfurt last year.