Treasury firm raises €15.4m for €210m China project
A COMPANY controlled by Treasury Holdings has successfully completed a private placement as it looks to raise funds for a €210m investment in China.
Treasury China Trust (TCT), which is chaired by Richard Barrett, said it raised SGD26.7m (€15.4m) by private placement to partially fund the investments in shopping malls in Qingdao and Shanghai.
As well as the placement, TCT is using a convertible bond and bank debt to raise the required funds.
The company said the placement was "substantially oversubscribed" and that neither Treasury Holdings nor any related entities took part in the placement.
The placement amounts to 6.7pc of the original share capital. It was undertaken at a 9.2pc premium to the volume weighted average price per unit for the 10 trading days prior to December 9.
TCT said the proceeds will partially fund the proposed purchase of a 55pc interest in Central Avenue Mall, Qingdao, in China's eastern coastal province of Shandong. TCT's share is expected to cost in the region of SGD93.7m (€54.1m) while the 100pc stake in the Retail Mall in Shanghai is expected to cost around SGD112.9m (€65.2m).
Chief executive Richard David said the acquisitions were part of an overall strategy in the country.
"It is clear that the last decade has continued to witness significant economic reform across China, with the country deepening its industry expansion and quality of output.
"Furthermore, it is clear the government has embarked on a programme to create a stronger domestic component of the national economy, and implemented policies to encourage greater domestic consumption.
"TCT will focus on the retail sector of the commercial real estate industry in China, and we are very pleased to report a strong take-up for the private placement."