keeping with these rapacious times, China Central Property hopes to
make money out of the misfortunes of other Chinese property developers.
This new property company, founded by by Vincent Lo, one of the
best-known tycoons in Asian real estate, aims to buy up unfinished
properties in China that have been abandoned when the developers went
CCP wants to raise £150m through a listing
on London's AIM market, presumably hoping to appeal to western
investors jaded with the existing universe of AIM-listed China plays,
which comprises a colourful assortment of ring-tone companies, biofuel
start-ups and junior mining companies.
But AIM's less stringent listing procedures are also a big attraction. The Financial Times quotes an advisor
to CCP who said AIM was chosen because “it is a good market for
companies without a long financial history, and this one has no
The ease with which Chinese start-ups with little track record
can can list on London's AIM has led critics to dub it the “Wild West”
exchange — see this EngagingChina story for more.
CCP, which is being spun off from HK-listed Shui On Construction and
Materials, will include the stakes in five Chinese property projects
held by Socam along with JP Morgan and other partners. Deutsche Bank is
the sole global coordinator, sole bookrunner and nominated adviser
(nomad) to CCP.
There were 320m square metres of unsold property in China at the end
of last year compared to 65m sq m in 2000, according to CB Richard