by millionairemind » Fri Aug 27, 2010 7:15 am
Singapore Companies
Published August 27, 2010
Ying Li acquires Chongqing site for RMB697m
The developer also lines up bank credit of US$200m to pursue expansion
By FELDA CHAY
SINGAPORE-listed Ying Li International Real Estate said yesterday it has acquired a commercial development site in China's Chongqing city for 697 million renminbi (S$139.5 million).
It added in a separate announcement that it has obtained credit facilities of up to US$200 million from Standard Chartered Bank (China). The money will be used to make site acquisitions and develop projects, it said.
The 102,483 square feet commercial site it bought will be developed into 968,752 sq ft of grade A office space and 430,556 sq ft of high-end retail space. The gross floor area will be about 1.7 million sq ft.
The site is in the Jiefangbei central business district and is part of the Chongqing municipal government's 600 billion renminbi plan to redevelop the city centre to make Chongqing CBD a financial hub.
Ying Li said yesterday the project is expected to be completed by end-2013.
Ying Li chief executive Fang Ming said the company expects to see more multinational firms and large domestic corporations setting up offices in the district, given the Chinese central government's 'Go West' development policy.
China's 'Go West' policy is aimed at reducing the wealth gap between the country's relatively poorer western inland provinces and the wealthier provinces on its eastern coast.
To strengthen its business, Ying Li, which focuses on the Chongqing property market, said that under its agreement with Standard Chartered, the bank will also provide services such as syndicated loans, foreign currency commercial loans, bridging loans, guarantees and trade and project financing.
Earlier this year, Ying Li issued $200 million of convertible bonds, due in 2015, to finance its growth plans.
Commenting on the bond issue and Standard Chartered's US$200 million credit facilities, Mr Fang said: 'With the ability to secure funding through debts and equity, we are able to further pursue our growth strategy and strengthen our leadership position as the largest commercial property developer in the core CBD of Chongqing.'
Earlier this month, Ying Li reported a second-quarter loss attributable to shareholders of 20.2 million yuan on the back of a drop in property sales. In the corresponding period last year, the loss was 2.4 million yuan.
Revenue for the period ended June 30 fell 60.1 per cent from a year earlier to 13.7 million yuan.
Yesterday, Ying Li's counter here rose 2.6 per cent, or one cent, to close at 39.5 cen
"If a speculator is correct half of the time, he is hitting a good average. Even being right 3 or 4 times out of 10 should yield a person a fortune if he has the sense to cut his losses quickly on the ventures where he has been wrong" - Bernard Baruch
Disclaimer - The author may at times own some of the stocks mentioned in this forum. All discussions are NOT to be construed as buy/sell recommendations. Readers are advised to do their own research and analysis.