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China property

Greenland to launch internet finance business

PUBLISHED : Friday, 27 March, 2015, 12:58pm
UPDATED : Wednesday, 20 June, 2018, 5:20pm

Greenland Hong Kong Holdings, the Hong Kong-listed unit of mainland China’s largest developer by sales, said on Friday that it would launch an internet finance business this year.

The company said it was in the final stage of closing its first deal for a mainland Chinese project worth US$200 million.

“We decided to pursue the internet finance and fund management relating to the property industry, while developing existing property operations,” Greenland Hong Kong chairman Chen Jun said, without providing further details.

Greenland Hong Kong established a property fund management company, Blackwood Capital, and raised an offshore equity fund of US$1 billion. It completed the first investment by acquiring an office building in Shanghai in December last year.

Hou Guangjun, executive director and chief operating officer, said the company was now raising a second fund whose size will be about US$1 billion.

The diversification plan was unveiled as the company reported a loss, excluding property revaluation gains and income tax, of 21.14 million yuan for the year to December, against a profit of 596.86 million yuan in 2013.

However, Chen was optimistic about the outlook as the company would have more contributions from property sales.

Greenland Group completed a back-door listing in Hong Kong after buying 60 per cent of the enlarged issued capital of SPG Land (Holdings) in August in 2013. SPG Land was renamed Greenland Hong Kong.

Separately, Poly Property, mainland China’s 27th-largest developer, on Friday reported a 65.8 per cent fall in annual profit attributable to shareholders last year to HK$929 million. It is the sister firm of Shanghai-listed Poly Real Estate, which is the country’s fifth-biggest developer in terms of sales.

Combined, the two companies rank as China’s No 3 developer. Both are controlled by state-owned conglomerate China Poly Group.

The company said in a Hong Kong stock exchange filing that it aimed for contracted sales of 26 billion yuan this year, up from last year’s 24.1 billion yuan.

“The group will remain committed to its goal of prudent development, seeking to expedite the clearance sale of inventories, exercise prudent control over investment and explore innovative development models,” it added.

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