Hopson Development Holdings, a Hong Kong-listed developer on the mainland, said it would invest 795.58 million yuan in a multi-purpose project in Beijing that included offices, hotels and music halls. The developer said it agreed to buy a 60.98 per cent stake in Beijing Dongfangwenhue International Properties for 17.69 million yuan from Beijing Huaxia Chuang Ye Real Estate Development. Hopson also said it agreed to buy 536.89 million yuan of loans from Beijing Huaxia advanced to Beijing Dongfangwenhue and contribute 241 million yuan within three years after the venture received a new business licence. Shares of Hopson, whose property development and investment interests are mainly located in Guangzhou and Beijing, rose 3.45 per cent to close at $16.50 yesterday. The stock has gained 73 per cent over the past 12 months. Beijing Dongfangwenhue owns a 15,834 square metre site in the prime Dongcheng district, between Chanoyangmen Bridge and East Fortieth Bridge. Other shareholders in the project are Beijing Cultural, which holds 14.57 per cent and Beijing Zhaode, which owns 24.45 per cent. Hopson said the deal was a connected transaction as Beijing Huaxia was 25 per cent owned by the brother-in-law of its chairman Chu Mang-yee and 25 per cent owned by Guangdong Hanjiang Construction. Hanjiang Construction is 90 per cent owned by Mr Chu's brother and 10 per cent by Mr Chu's brother-in-law. Last month, Hopson reported a 181 per cent jump in profit to $1.21 billion for last year from a revised $432.78 million a year earlier while revenue increased 54 per cent to $6.13 billion. Hopson is seeking to expand its land bank portfolio in first-tier cities such as Beijing and Guangzhou. It holds a gross floor area of 13.8 million square metres, sufficient for development until 2013.
