China Real Estate Opportunities SA
14 December 2006
CHINA REAL ESTATE OPPORTUNITIES S.A.
PROPOSED ACQUISITION OF BEIJING PROPERTY
China Real Estate Opportunities S.A. ("CREO") announces that it has today
exchanged conditional contracts for the acquisition of a property in Beijing,
China.
The property is a prime mixed-use development located in central Beijing, known
as the Xidan Centrepoint Shopping Centre, Office Complex and Hotel. CREO has
committed to purchase 100% of the property subject to a number of conditions
including the construction of the project being substantially complete and CREO
shareholder approval. The vendor is a wholly-owned subsidiary of China
Metallurgical Construction (Group) Corp, one of China's largest conglomerates
and a company controlled by China's central government.
Xidan Centrepoint is located in a prime location on one of Beijing's busiest
shopping and commercial streets, known as Xidan. The street runs north-south
approximately 1km directly west of the Forbidden City and Tiananmen Square and
approximately 1km directly to the east of the Financial Street district. The
property lies less than 100 metres north of Xidan (underground) Station.
The property covers a site area of 16,073 square metres and will when complete
have a total gross built floor area of approximately 194,949 square metres over
15 floors above ground and 4 floors below ground. Of this area, approximately
102,945 square metres is designated for retail, a 372 room luxury hotel
component comprises another 32,126 square metres, while an office component is a
further 15,858 square metres. 1,000 car parking spaces and ancillary uses are
designated for the remaining 44,020 square metres.
The property is currently under construction and is expected to be completed by
December 2007. CREO has agreed to pay a total price of RMB 3,742,520,000
(approximately £243.1m or €361.9m*) payable in stages as title to the property
is acquired and as the property is completed and leased out. An initial deposit
will be paid by the Company from existing cash resources amounting to RMB
187,876,000 (£12.2 million or €18.2 million).
Since this acquisition will be a reverse takeover under the AIM rules, pending
shareholder approval and completion of the acquisition, the shares of the
Company were suspended from trading on AIM with effect from 10.00 a.m. on 8th
December at the request of the Company.
A circular will be sent to CREO shareholders in due course detailing the terms
of the proposed acquisition along with an admission document. It is expected
that the shares in CREO will remain suspended until the acquisition has been
approved. CREO will be undertaking a fund raising in the New Year by way of a
placing of new shares to the market and a further announcement regarding this
will be made in due course
CREO is majority owned by the directors of Treasury Holdings ("Treasury"), Real
Estate Opportunities Ltd ("REO") and the directors of REO. It will be proposed
in the forthcoming circular that CREO will be managed by Treasury, Ireland's
largest property developer. Treasury owns 58.5% of REO's ordinary shares.
Treasury controls a large property investment and development portfolio across
Europe as well as very substantial interests in environmental technology,
renewable energy and waste management. Treasury started operations in China in
2002 working with Shanghai Industrial Investment Company, a company owned by the
Shanghai Municipal Government, on the development of the Chongming Eco City just
outside Shanghai. Since then, Treasury has expanded its business considerably
both in Shanghai and Beijing and 3 of the 6 executive main Board Treasury
directors are now resident in China to grow the business.
CREO was formed in December 2005 to investigate real estate opportunities in
China.
*Exchange rate £1:RMB 15.39, €1 EUR:RMB 10.34
Enquiries to:
CREO
Ray Horney, Chairman Tel: +44 (0) 1273 775225
Treasury Holdings
Rob Tincknell Tel: + 86 137 889 83016
(N.B GMT + 8hrs)
Teather & Greenwood
Paul Fincham Tel: +44 (0)20 7426 7736
Bankside Consultants (UK)
Simon Rothschild
Oliver Winters Tel: +44 (0)20 7367 8888
This information is provided by RNS
The company news service from the London Stock Exchange