The story appears on

Page B2

August 28, 2009

GET this page in PDF

Free for subscribers

View shopping cart

Related News

Home » Business » Real Estate

Vanke seeks funds for housing projects

CHINA Vanke Co, the nation's largest publicly-listed real estate developer, said it plans to raise up to 11.2 billion yuan (US$1.64 billion) by selling additional shares to fund housing projects across the country.

Under the company's plan, 9.2 billion yuan of proceeds from the share sale will be used to build 14 residential projects in cities, including Tianjin, Hangzhou, Dongguan, Shenyang and Shenzhen, whereas the rest of the 2 billion yuan will be slated for working capital, according to a statement filed to the Shenzhen Stock Exchange yesterday.

"Vanke's decision to sell additional shares to individual investors at this time seems the only feasible plan for the company," said Cao Xute, an analyst at Sinolink Securities Co. "Private placement is not suitable for Vanke due to the large size of 11.2 billion yuan. Moreover, it could be easier now for the developer to raise funds as the country finally resumed initial public offerings in late June."

Vanke's property sales jumped 32 percent to 35.87 billion yuan in the first seven months of this year amid robust home buying sentiment fuelled by the government's stimulus measures, including preferential loan policies.

The Shenzhen-based developer earlier this month raised its target for new housing starts this year to 5.85 million square meters from the original 4.03 million square meters.

Vanke's net profit rose 22 percent to 2.52 billion yuan in the first half of this year.

Vanke last raised 9.94 billion yuan in an additional share sale in August 2007 and used 8.69 billion yuan for residential projects in 11 cities, including Shanghai, Guangzhou, Foshan, Zhuhai, Hangzhou and Nanjing, it said in a separate statement yesterday.

The country's urban housing market picked up momentum about half a year ago as a result of a strengthening economy and robust lending, but creating concerns over asset price bubbles amid abundant liquidity.


Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend