Beijing Capital Land posts 2pc drop in 2016 net profit, says it will continue Australia home building drive

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Beijing Capital Land’s shares in Hong Kong fell sharply in Hong Kong on Tuesday following its annual results announcement. Photo: AFP

Published: 6:30pm, 21 Feb 2017Updated: 10:13pm, 21 Feb 2017

State-owned developer Beijing Capital Land said it will continue to expand its footprint in Australia despite tightened controls on capital outflows.

“We will continue to strengthen our presence in Australia, and this year we’re considering entering Melbourne,” Tang Jun, president of Beijing Capital Land said at the annual result briefing in Hong Kong on Tuesday.

Beijing Capital Land currently has several residential projects in Sydney and Brisbane, reflecting its lead as one of the first Chinese property developers to expand in Australia,

“For the long term, we are very positive on Australia, given its receptive stance towards Chinese immigrants and buoyant economic activities,” said Bryan Feng, head of investor relations at Beijing Capital Land.

Feng added that fresh capital control on Chinese individuals buying overseas real estate will not have a big impact on its sales because about 80 per cent of its buyers are Australian residents.

The developer expects Australian property projects to contribute 10 to 15 per cent of its annual contracted sales in 2018 and 2019, as a result of portfolio diversification. The company said it is seeking local bank loans to finance its developments in Australia besides tapping offshore US dollar bonds.

Fan Shubin, chief financial officer (from left); Li Songping, chairman; Tang Jun, president; and Bryan Feng, general manager attend Beijing Capital Land’s 2016 annual results announcement in Admiralty on February 21, 2017. Photo: Xiaomei Chen