Concord Land Development, the property arm to be spun off from Pacific Concord Holdings, will invest $1.2 billion over the next two years to build mainland shopping centres, according to chairman Wong Sai-chung.
While Pacific Concord was not aiming to cash in on the proposed spin-off, Mr Wong said he would sell his 8.1 per cent personal stake in Concord Land in the initial public offering to streamline the company's shareholding structure.
He reiterated the funds raised from the share issue would be used for future expansion and not debt repayment.
He said Concord Land had an accumulated long-term debt of $900 million, but the figure was not substantial because Concord Land had a property portfolio worth $7.7 billion.
Market sources indicated Concord Land's new issue would be worth US$150 million to $200 million.
Mr Wong said the property arm was negotiating to acquire two or three retail projects in China.