Poly (Hong Kong) Investments Holdings, which is transforming itself from a conglomerate into a property firm, said it would pay HK$1.4 billion to acquire development projects and land from parent China Poly Group.
Poly (Hong Kong) said it would issue 235 million new shares at HK$6.10 per share, a 26 per cent discount to its last trading price, to Poly Southern Group, a wholly owned subsidiary of China Poly Group, to acquire the entire equity interests of Shenzhen Poly Investment,which has more than four million square metres of development projects and land.
Shenzhen Poly, wholly owned by Poly Southern before the transaction, hold land and properties in mainland cities including Shenzhen, Guangzhou, Guiyang, Nanjing, Harbin and Jinan with a gross floor area of about 135,000 sq metres for investment properties, about 1.8 million sq metres for development projects and about 2.5 million sq metres for its land bank.
Poly Southern, which also owns a 49 per cent stake in Shanghai-listed Poly Real Estate, has been the property flagship for Poly Group. After the acquisition, total floor area for its land bank and properties under development by Poly (Hong Kong) will increase to more than six million sq metres from two million sq metres.
With the addition of Shenzhen, Guangzhou, Guiyang, Nanjing, Harbin and Jinan, the number of cities in which the company has a presence will increase from five to 11. By the end of last year, Poly (Hong Kong) had eight property projects under construction, in cities including Shanghai, Wuhan, Chongqing, Suzhou and Beijing, with total gross floor area of 1.25 million sq metres.
Poly (Hong Kong) has been shifting its focus to property development and investment in the past two years.