Company looks to seal mainland deals as losses from cement business grow
Shui On Construction and Materials, looking to diversify amid cement sector losses, hopes to finalise talks within two months to acquire two unfinished commercial buildings in Beijing and Qingdao.
The latest move follows the formation of a consortium with JP Morgan to acquire a grade A office plaza in Dalian, Liaoning province, in September.
Investment for the Dalian plaza amounted to US$75 million, but a market valuation suggested that the building was worth US$120 million to US130 million, according to Frankie Wong Yuet-leung, the chief executive of Shui On Construction and Materials.
The Beijing building had a gross floor area of 130,000 square metres, to be split evenly between commercial and residential development, said Mr Wong, who is also the managing director of the company's parent, Shui On Holdings.
The Qingdao commercial building has a gross floor area of 68,000 square metres.
