In
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 bust.
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 financial history."
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 Ellis.
