May 29 (Bloomberg) -- Shui On Land Ltd., the developer controlled by billionaire Vincent Lo, plans to sell shares in its Xintiandi entertainment complex unit to investors in a separate listing in Hong Kong.
The Shanghai-based company has submitted the proposal to the Hong Kong stock exchange, Shui On said in a statement late yesterday. The company didn’t say how much it plans to raise and when the listing, which is subject to the stock exchange’s approval, will be completed.
The company’s first Xintiandi project is a residential and commercial complex in Shanghai built through the redevelopment of houses dating back to the 19th and 20th centuries. The complex, whose name means New Heaven and Earth in Chinese, attracted local and international chains including Paulaner Brahaus and Starbucks Corp.
Shui On subsequently used the concept to build similar projects in other Chinese cities including Chongqing and Wuhan. The company last year said it will spend about 8 billion yuan ($1.3 billion) to develop an office and restaurant precinct, Hongqiao Tiandi, near Shanghai’s smaller airport and high-speed rail station.
Money raised from the share sale will be used to fund the company’s existing developments and for acquisitions and investments in other commercial properties, Shui On said in the statement.
Shares of Shui On, which trade in Hong Kong, rose 7.3 percent to HK$3.08 at the close of trading in Hong Kong today, the most since February. They have gained 31 percent this year compared with a 4.4 percent advance in the Hang Seng Property Index, which doesn’t track the company’s stock.
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