The Hong Kong Parkview Group Limited (“Hong Kong Parkview” or “the Company”, SEHK: 00207) today announced that its independent shareholders have approved COFCO Group’s HK$14.2 billion injection of the commercial property portfolio comprising a total of 11 property projects in six key cities in Chinese Mainland and Hong Kong into the Company.
In order to better align with the COFCO brand and the new business strategy, Hong Kong Parkview has obtained shareholders’ approval to change its name to COFCO Land Holdings Limited (“COFCO Land”) and will become the overseas listed platform of COFCO Group, with a special focus on developing, operating, selling, leasing and managing mixed-use complexes and commercial properties.
In addition, the independent shareholders of Hong Kong Parkview have passed the resolution to proceed with the placing agreement, which enables the Company to maintain the minimum public float of 25% required by the stock exchange of Hong Kong and to raise capital to fund future property development.
Upon completion of the transaction, the Company will complete the issuance of a total of approximately [1.955 billion] new shares to professional and institutional investors at a price of HK$[2] per share to raise approximately HK$[3.91] billion in aggregate gross proceeds.
Mr. ZHOU Zheng, Chairman and Executive Director of COFCO Land Holdings Limited said, “The approvals reflect shareholders’ recognition of the COFCO brand and their support for the Company to enter into China’s vibrant commercial property market. At the same time, the new investors have placed confidence in the growth prospects of the Company by subscribing to newly issued shares. With such a strong strategic shareholder base, I believe COFCO Land will continue to step forward to become one of the leaders in China’s commercial property market."
With the transaction to be completed on 19 December, dealing of the newly issued shares on the stock exchange of Hong Kong will commence on the same day in board lots of 2,000 shares under the stock code 00207.
The assets to be injected into the Company include two mixed-use complex projects in Chengdu and Beijing, two commercial property projects in Hong Kong and Shanghai, four hotel projects in Beijing, Nanchang and Suzhou, one integrated tourist project in Sanya, and two minority-held projects in Shanghai and Chengdu.
Noteworthy among the Company's mixed-use complex projects will be Chengdu Joy City, with construction expected to be completed in the third quarter of 2015, and Beijing COFCO Plaza. Chengdu Joy City offers an attractive mix of a shopping mall and an office tower coupled with bars, restaurants and entertainment facilities, while Beijing COFCO Plaza integrates two office buildings with a shopping mall and is located at the heart of Beijing facing Chang An Avenue and near the entrances of subway stations. Their excellent location and appealing design are attractive to high quality tenants, including multi-national financial institutions and well-known brands.
The two commercial projects - namely Top Glory Tower in Hong Kong, as well as Ocean One and Fraser Suites Top Glory Shanghai - are located in commercially vibrant areas. Based in the Pudong New Area of Shanghai, Ocean One and Fraser Suites Top Glory Shanghai consists of two residential apartment buildings for sale and three blocks of serviced apartments for leasing – with residential apartments and serviced apartments offering views of the spectacular Huangpu River scenery.
In addition, the Company has four quality hotels on hand: the Gloria Grand Hotel Nanchang, Gloria Plaza Hotel Suzhou, Waldorf Astoria Beijing and W Beijing – Chang’an. These hotels are located close to some of the most popular and easily accessible commercial areas within their respective cities.
Fully complementing its property portfolio is the integrated tourist project in Sanya, which includes three resort hotels. In addition to the St. Regis Sanya Yalong Bay Resort, MGM Grand Sanya and Cactus Resort Sanya by Gloria, the projects also feature two high-end commercial apartments, the Signature and Princess Palace III, an exhibition centre complex project, a yacht club and a recreation park.
To drive its future growth, the Company has been granted the call options to acquire six mixed-use complexes under the “Joy City” brand over the few years. These mixed-use complexes include Shanghai Joy City, Tianjin Joy City, Beijing Chaoyang Joy City, Beijing Xidan Joy City, Yangtai Joy City and Shenyang Joy City from COFCO Corporation.
Looking ahead, COFCO Land aims to leverage its relationship with COFCO Group, and to continue to create value by developing, operating, leasing and managing mixed-use complexes in Chinese Mainland under the flagship brand of “Joy City” as well as other high quality property developments. “Joy City” is positioned as a brand representing stylish and fashionable shopping malls targeted at the middle class younger generation together with other components including offices, hotels and serviced apartments. Building on its past success in securing high quality projects, the Company plans to continue to acquire land in prime locations within first- and second-tier cities.
Mr. ZHOU said, “Continuous economic growth and the booming commercial property industry in China have created immense opportunities for the Company. The strong brand reputation of COFCO and its unique project portfolio has fuelled our expansion. We believe the asset injection and a listing in Hong Kong is a huge step forward for the Company, providing an ideal international financing platform for our future development and enhancing our exposure and branding. This in turn enables us to capture the huge development opportunities in China, and optimise project planning, brand building and management services as well as to consolidate our leadership position in China’s commercial property market.”
