Beijing North Star, a Hong Kong-listed property developer owned by the municipal government, plans to raise up to three billion yuan (HK$3.29 billion) from the capital market to finance further development. The developer's up to 1.7 billion yuan bond sale last year was postponed amid the mainland government's policy to curb credit growth in the property market. Chairman He Jiangchuan yesterday said the company planned to raise two to three billion yuan by issuing bonds, selling trust products or introducing joint-venture partners to its projects. The total investment cost of North Star's existing projects will be about 5.4 billion yuan this year, including 1.7 billion yuan for the construction of the National Olympic Convention Centre and Beichen Building and renovation programmes. North Star announced on Wednesday night that its net profit rose 17.2 per cent to 463.15 million yuan last year from 395.27 million yuan in 2006. Revenue climbed 42.3 per cent to 3.99 billion yuan from 2.81 billion yuan. Earnings per share dropped to 13.76 cents from 18.67 cents. Zhufeng Wang, an analyst at Evolution Securities China, said the revenue and net profit were better than his expectations. Mr Wang had forecast a 35 per cent rise in revenue. 'The growth was mainly driven by property sales and the rising property prices in Beijing,' he said. 'The average price of its projects in Beijing rose to nearly 18,000 yuan per square metre last year from 12,000 yuan per square metre a year ago.' Despite the cooling measures, Mr Wang expects Beijing North Star's revenue to rise 40 per cent this year as the strong property sales last year will be booked. North Star expects to generate revenue of 4.5 billion yuan from the contracted sales of 430,000 square metres this year. Last year's revenue amounted to 3.1 billion yuan from contracted sales of 210,000 square metres. Mr He said the developer had received 1.5 billion yuan from the sale of Olympic Media Village in the last quarter of last year. The second phase of the project will be launched this month. The developer has no plans to adjust the asking prices. The company declared a final dividend of three fen per share last year, down 25 per cent from four fen. Shares of North Star rose 0.79 per cent to close at HK$3.81 yesterday.