Hong Kong Parkview gets injected with $14.2b by COFCO

All for a commercial property portfolio.

According to an HKEx release, the Hong Kong Parkview Group Limited 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 mainland China 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 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.

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 207.

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.