17/10/2018-3

Hengli 65 Taikoo City Center 65% interest involved 13 billion

China Resources Hengli Group purchased the 3rd and 4th blocks of Taikoo Shing Center from Swire Properties (01972) for $15 billion. Due to financial difficulties, the news indicated that it has introduced Gem Capital as an investment partner and lending credit. It accounts for 65% of the shares and is estimated to involve more than 13 billion yuan.

This year, Swire Properties announced that it will take out the third and fourth office buildings of Taikoo Shing Center for $15 billion. It will be undertaken by Hengli Group and will be completed in April next year. In recent months, the external market conditions have fluctuated, and the mainland’s funds are tight. It is reported that Hengli has encountered problems in financing in recent months. Therefore, some of its floors are put on sale, hoping to cash out first. According to market sources, Hengli also entrusted investment banks and surveyors to find interested consortia to buy shares, so as to reduce the shortage of funds.

3 and 4 office buildings with a market value of 20 billion

According to the news, Hengli has basically implemented the introduction of the Gem Capital Fund as an investment partner, and Gem Capital will account for 65% of the project, with an estimated price of about 13 billion yuan. According to the market value of the entire project of about 20 billion yuan, Hengli has earned about 30% of the book value of the purchase price. The introduction of the major shareholder will greatly reduce the financial pressure for completing the transaction next year.

The Hengli Group was established in 1994. Its business includes petrochemicals, textiles, etc. It also invests in real estate. In recent years, it has entered Hong Kong real estate. In 2016, it purchased about 385 parking spaces in the Meisongyuan parking lot in Dawei from the joint exhibition (00823) for 204 million yuan. Connected to a shop. In view of the appreciation of the property and the need to cash out, the Group resold the project to investor Cai Boeneng for 392 million yuan last month, with a profit of about 188 million yuan. In addition, Chen Changwei, Chairman of the Board of Directors of the Group, bought the top-level unit of Taikoo’s Peak Mansion in 2015 for a total of 509.6 million yuan.

Gem Capital has a number of quality assets

As for the major shareholder Kehui Capital introduced this time, it is a private equity real estate fund management company in Hong Kong. It invested in small and medium-sized commercial buildings in the early years. In recent years, due to the successful fundraising, the scale of investment projects has increased significantly. In 2015, the company purchased the Intercontinental Hotel in Tsim Sha Tsui for $7.3 billion. Last year, it led the fund with a fund of $23 billion to purchase 17 shopping malls. In addition to the Taikoo Shing Shopping Centre, which was purchased, the consortium has held and managed a number of Hong Kong shopping malls. Quality assets.

Blocks 3 and 4 of Taikoo Shing Center were completed in 1992 and 1997 respectively. The total floor area is about 440,000 and 556,000 square feet. It was originally the core commercial building of Taikoo Place under Swire Properties. In 2014, the government sold the Quarry Bay Concord Building 8 The layer of industrial buildings will be redeveloped for Taikoo Real Estate. It will exchange approximately 205,000 square feet of floor space on the 10th floor of Block 3 of Taikoo Shing Center in the same area. At present, Hengli holds the 3rd floor and covers about 226,000 square feet. The fourth floor is about 790,000 square feet. If the current market value is about 20 billion yuan, the price is about 25,000 yuan.