Shenzhen Investment to Buy Land for 4.15 Billion Yuan

Shenzhen Investment Ltd. (604), a company backed by the namesake Chinese city, will buy land there from shareholder Shum Yip Group Ltd. for 4.15 billion yuan ($667 million) in stock, as it plans mixed-use projects.

Shenzhen Investment will issue 1.41 billion new shares to fund the purchase, boosting Shum Yip’s stake in Shenzhen Investment to 59.7 percent from 44.4 percent, according to a Hong Kong stock exchange filing yesterday. After increasing its stake, Shum Yip will seek a waiver from making a buyout offer for the company, Shenzhen Investment said.

Shenzhen Investment is buying land at the junction of Caitian Road and Sungang Road Shenzhen’s Futian district. The company plans a 170,720-square-meter (1.84 million square feet) residential project on the northern portion of the site and a 618,190-square-meter office, hotel and commercial services complex on the southern part.

The shares of Shenzhen Investment will resume trading in Hong Kong today after a three-day suspension pending the announcement, according to the filing. The stock fell 2 percent to HK$3.36 on Jan. 17.

To contact the reporter on this story: Joshua Fellman in New York at jfellman@bloomberg.net

To contact the editor responsible for this story: Bruce Grant at bruceg@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.