CC Land expects to tumble into the red
Chinese developer forecasts loss of US$49.6m for last year on drop in revenue
Chinese property developer CC Land Holdings, the new owner of London’s landmark building “Cheesegrater”, says it expects to incur a loss for last year.
The company said in a filing to the Hong Kong stock exchange on Friday it expected to report a net loss of HK$385 million (US$49.6 million), compared to a profit of HK$1.4 billion for 2015.
The developer, based in Chongqing, said the losses were due to significant drops in recognised revenue and disposal gains.
On Wednesday, CC Land announced it had agreed to buy Leadenhall Building in London, the financial district’s tallest tower known as the “Cheesegrater”, for £1.135 billion (US$1.4 billion), marking the largest ever Chinese purchase of British real estate.
The developer, with a market capitalisation of HK$6 billion, closed 0.4 per cent lower at HK$2.33 in Hong Kong on Friday, following a 1.3 per cent fall on Thursday after the deal was disclosed.