Citic eyes Shanghai property

Red chip Citic Pacific is looking for opportunities to invest in high-end residential properties in Beijing and Shanghai with attractive yields, according to deputy managing director Peter Li Ching-hing.

'Our criteria to invest in a project is that it has already achieved a reasonable return, and it could yield even higher return in future, ' Mr Li said.

The potential investments would further enhance the company's mainland property portfolio, even though he said property would not be the company's main focus.

On December 24, Citic Pacific announced the proposed acquisition of two investment properties in prime areas of Shanghai from substantial shareholder Citic Hong Kong for HK$2.7 billion.

It said it planned to acquire an 80 per cent stake in the office-retail complex Citic Square, completed in 2000, for HK$2.02 billion.

It also planned to acquire 100 per cent of the residential development Royal Pavilion for HK$680 million.