Treasury's Chinese property interests jump 6pc in boom
Published 28/07/2010 | 05:00
THE Chinese property group backed by Treasury Holdings has reported a rise of 6pc in the value of its assets in the country as China experiences a major property boom.
Treasury Holdings Real Estate Pte saw its assets grow in value by 6.64pc for the 12 months ending June 30. The company's portfolio is mainly in Shanghai and Beijing with some properties rising in value by 24.2pc, with others up by 5.2pc.
Treasury and its representatives are believed to own about 40pc of the equity in Treasury Holdings Real Estate. Treasury is also the investment manager for the company and has a key role in selecting the assets it ultimately invests in.
The company used to be called China Real Estate Opportunities (CREO), and now trades on the Singapore stock exchange. The company may now benefit from the recent decision by the Chinese authorities to allow the Chinese currency to float, possibly adding value to the firm's assets which are denominated in renminbi.
The company said the property market, which some analysts believe is hugely overvalued, was underpinned by domestic consumption and a strong office leasing market. Some high-profile tenants have recently taken space in the company's buildings, including Casio, Johnson & Johnson and the Bank of Beijing.
Meanwhile the company has also secured a five-year loan for one of its key assets in the City Centre development in Shanghai.
The $480m (€370m) loan has been provided by Industrial and Commercial Bank of China, the country's largest lender by assets. The company said the terms were considerably more favourable than an outgoing loan provided by Credit Suisse.
Chief executive officer Richard David said: "This new loan facility, secured during a period of intense tightening of liquidity by the Chinese central government, serves as a strong endorsement."