Greenland Hong Kong gets more asset injection from parent

Shareholder loan and 55pc stake in owner of Kunming projects transferred in 952m yuan deal

PUBLISHED : Friday, 01 November, 2013, 2:17am
UPDATED : Friday, 01 November, 2013, 2:17am

Greenland Hong Kong is buying a shareholder's loan and a 55 per cent interest in a company that holds Kunming property projects from its parent, Greenland Group, for 952 million yuan (HK$1.2 billion).

The deal marks the second asset injection into the company since Shanghai-based Greenland acquired a 60 per cent stake in Greenland Hong Kong at the end of August.

The firm in which the stake is being bought owns two developments - one in Caohai and one in Wuhua - in Kunming, the capital of Yunnan province.

The Caohai development comprises residential, offices and car parks with a total gross floor area of 211,733 square metres.

With a total gross floor area of 472,642 sqmetres, the Wuhua project is offering high-end offices, homes and shops. Pre-sale marketing will begin at the end of this year.

Chen Jun, chairman and chief executive of Greenland Hong Kong, said the asset injection, together with that of a Hangzhou project early last month, would bring long-term business prospects to the company.

"Two successive asset injections in a short time also represent Greenland Group's support to Greenland Hong Kong's future development, which will help it achieve high-speed growth in 2014," Chen said.

Greenland obtained its listing status in Hong Kong through a back-door process in late August. It bought 60 per cent of the enlarged issued share capital of listed property company SPG Land, which was renamed Greenland Hong Kong.

The company said at the time that it would inject the best of its recent mainland projects into the Hong Kong-listed company to help it achieve contract sales of 10 billion yuan next year and 50 billion yuan in 2018. Greenland has also been active in overseas property developments.

Greenland shares fell 1.79 per cent to HK$5.48 yesterday.