Saturday, February 06, 2010
CHINA Real Estate Opportunities is to list on the Shanghai Stock Exchange to achieve a share price closer to the company’s real net asset value.
Shares in the property company, which is 57% owned by Dublin-based Treasury Holdings, were trading at £3.50-£3.60 (c€4) on London’s AIM yesterday, even though their net asset value was around £10 (€11.40) a share at its last interim report in August 2009.
The company plans to switch its listing to Singapore in the next six months, and to restructure as a "business trust" under Singapore law. The company believes this move will ensure an instant share price jump as Asian investors will have a better awareness of the real value of CREO’s portfolio.
The company also wants to participate in the strong capital flows being experienced in Asia, which have exceeded $8.8bn (€6.6bn) for the property sector on the Hong Kong and Singapore exchanges in the past six months.
CREO’s Shanghai and Beijing properties, whose net worth has grown by 4% since last June, are now valued at the equivalent of around €900m in local currency.
This figure excludes the recent disposal of CREO’s interest in the Tangdao Bay property.
2009 was challenging for office leasing with vacancy rates in Shanghai peaking at 14.2% in Q1, but falling to 11.4% by year end.
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