Firm raises €382m to purchase seven Chinese properties

CHINA Real Estate Opportunities (CREO), the property vehicle controlled by Johnny Ronan and Richard Barrett, has completed a £259 million (€382m) fundraising drive.

The money will be used to purchase seven sites in Shanghai and Beijing in China by CREO in what is one of the largest property deals in the country by an overseas firm.

China Real Estate Opportunities will also buy a property in Shanghai from Real Estate Opportunities (REO), a separately quoted company in which Mr Barrett and Mr Ronan are the largest shareholders.

The purchase will cost CREO £16.1m and it will also assume debts of £20.8m. The deal is being funded in CREO shares, which will list on London’s Alternative Investment Market tomorrow.

Mr Barrett has been leading CREO’s activities in China for a number of years and the company has 30 staff in the country.

Meanwhile, REO said yesterday that it is looking to raise funds from new investors to purchase certain properties from Treasury Holdings.

Treasury has a number of extensive developments in Dublin, including sites at Spencer Dock and is preparing to build the National Conference Centre.

“The board of REO wishes to announce that it is considering the possibility of a significant transaction under which certain properties will be acquired from Treasury Holdings for consideration in new ordinary shares and a corresponding placing of new ordinary shares will be undertaken with third party investors to raise cash to pursue its property development programme,” REO said in a statement yesterday.

Mr Ronan and Mr Barrett, through Treasury Holdings, own nearly 60% of REO. REO, in turn, owns nearly 16% of China Real Estate Opportunities.

Shares in REO gained 1% yesterday, valuing the company at £410m.