Shanghai Greenland Group Co., the builder of China’s third-tallest tower, said it’s planning to list a unit in Hong Kong this year as it seeks to enter the U.S. property market.
The state-owned developer will set up a subsidiary in Hong Kong, which will include some of its assets abroad, and list the unit on the Hong Kong Stock Exchange this year, Chairman Zhang Yuliang said in an interview in Shanghai yesterday, without giving a timetable. Zhang declined to say how much money the developer is looking to raise in the IPO of the unit that will focus on doing business in foreign countries.
Shanghai Greenland, which announced a A$480 million ($498 million) redevelopment in Sydney last week, plans to invest in hotel and residential projects on the West Coast of the U.S. and expects to complete the deals by the end of the year, Zhang said. The company joins other Chinese developers, including China Vanke Co., entering the U.S. as the government puts curbs on residential property at home.
“We will invest in countries where Chinese people go to the most; we are looking for a Chinese market that’s extended abroad,” Zhang said, citing growing numbers of Chinese buyers. “We have strong brand awareness among Chinese customers and know well about what they really want.”
Vanke, the biggest developer listed on mainland exchanges, has entered a residential-property venture in San Francisco with Tishman Speyer Properties LP, while Xinyuan Real Estate Co. in September said it was developing a New York project.
Closely held Shanghai Greenland expects revenue from its foreign business to reach as much as 3 billion yuan ($483 million) this year and the portion accounting for total revenue to grow “steadily” each year, Zhang said. The developer targets property sales of 150 billion yuan this year, a jump of 39 percent from 2012.
The company invested in a mixed-use project, including hotels, shopping malls and water amusement parks, in Jeju in South Korea, and in a hotel in Frankfurt last year, said Zhang.
Shanghai Greenland, set up in 1992, said in 2010 that it will invest 30 billion yuan in a 606-meter skyscraper that is under construction in the central Chinese city of Wuhan. Once completed, which is scheduled in 2016, it will only be dwarfed by the 660-meter Ping An Finance Center in the southern city of Shenzhen, due to be finished in 2015, and the 632-meter Shanghai Tower to be completed next year.
China’s tallest building currently is the 492-meter Shanghai World Financial Center.