CSI Properties raising funds

PUBLISHED : Wednesday, 17 September, 2014, 11:21am
UPDATED : Wednesday, 17 September, 2014, 11:21am

CSI Properties, a property investment company, is raising up to HK$442.4 million through placement of new shares to fund its property investment.

The company on Wednesday announced it is planning to sell 1.3 billion shares at HK$0.35 per share – a discount of 10.26 per cent to the stock’s closing price on Tuesday.

CSI Properties intends to use the net proceeds to strengthen its financial position, make property investments in Hong Kong and Macau and as general working capital.

CSI has been actively acquiring land of late. It bought a commercial and residential site in Tuen Mun for HK$427 million in August. It also teamed up with Sino Land, Chinese Estates Holdings and Chuang’s China Investments to submit a bid for a commercial site in Tsim Shai Tsui last month. The site was eventually sold to Henderson Land.

It is also bidding for the Tai Wai Station residential project. Since the total investment cost for the project is about HK$20 billion, surveyors expect most developers to form joint ventures to join the bidding.

Shares of CSI Properties plunged 8.97 per cent to HK$0.355 when it started trading this morning.