UK firm Cathay International Holdings (CIH) is to issue 48.84 million shares to raise GBP28.4 million (about HK$332 million) for the joint venture redevelopment of the Beijing Xiyuan Hotel.
Cathay International has through a joint venture company, Cathay International Investment (Beijing Xiyuan), subscribed US$29.33 million for a 60 per cent equity investment in the hotel in June.
Beijing Xiyuan Hotel, owned by the Beijing Municipal Government, has agreed to take a 35 per cent equity by contributing land use rights.
Another five per cent stake will be taken by Beijing Jin Peng Property Development Company, a financial arm of the Beijing Municipal Government.
Cathay International, formerly known as Stonehill Holdings, plans a six-year redevelopment project that includes a multi-purpose complex, with a shopping mall, car park, residential and office space to be developed in four phases.
''We will renew old buildings of low utility in the first phase,'' the company's vice-chairman Stephen Hunt said.
The joint venture will continue operating the hotel while the redevelopment takes place.