Beijing infrastructure project giant buys stake in Hong Kong-listed architecture firm
Urban development giant BMEDI has acquired a 28.83 per cent stake in Hong Kong listed architectural service provider C Cheng Holdings.
State owned BMEDI, a wholly-owned subsidiary of Beijing Enterprises Group, said on Tuesday the two companies are entering an era of strategic cooperation by setting their sights on urban development projects in Guangdong-Hong Kong-Macau Bay Area and Xiong’an New Area.
BMEDI, short for the Beijing General Municipal Engineering Design and Research Institute, has been involved in constructing a number of large infrastructure projects, including the so-called sub-centre pilot area located 17 kilometres east of Beijing, Beijing New Airport, Beijing-Tianjin-Hebei Railway System, and the Shenzhen Qianhai project.
Last year, its revenue reached HK$2.04 billion.
Ronald Liang, chairman of C Cheng, said the new cooperation would focus more on projects in the greater Bay Area as opposed to urban areas of Hong Kong.
Although specific projects were not disclosed, BMEDI chairman Liu Guisheng said the company operates five institutes in nine mainland cities in the Bay Area.
“We have managed to secure a number of contracts which total 1.485 billion yuan (US$215 million),” he said.
Liu said C Cheng was an ideal partner for BMEDI’s venture into the international capital market because it serves mostly private clients and focuses on architecture and design, and was the only integrated services provider listed on the Hong Kong stock exchange.
C Cheng has been involved in many landmark architecture projects both in Hong Kong and other mainland cities, including The One in Hong Kong and IFS in Chengdu.
Liu also said BMEDI’s cooperation with C Cheng will broaden in the future.
The equity investment deal will also see Liu and BMEDI executives Liu Yong and Su Ning join the board of C Cheng.
Liu said BMEDI’s parent Beijing Enterprises Group has been actively getting involved with many projects related to the Belt and Road Initiative, including a land development project in Phnom Penh, Cambodia, which covers over 30 square kilometres.