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| Central Plaza (Phase I), Shenyang |
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Leveraging our experience in property and construction, Mainland expertise and experience in strategic investment structuring and project management, SOCAM began to engage in the acquisition and development of distressed property projects in 2005.
In June 2007, SOCAM injected its 5 distressed asset development projects in Beijing, Dalian, Qingdao and Chengdu into China Central Properties Limited (CCP), in exchange for the shareholdings of CCP upon its admission to the London Stock Exchange’s AIM Board, in order to capitalise on the exciting opportunities in the China market for distressed properties.
CCP, our 41%-owned entity, focuses primarily on the acquisition of medium-to-large-scale, partially-completed property projects in prime locations in major and secondary cities in the Chinese Mainland, which have become available largely as a result of their owners’ financial constraints. Once acquired, the projects will be upgraded and, upon completion, will either be sold or leased.
The distressed property development model is characterised by shorter project cycles and less cash-flow requirements than traditional greenfield developments, and thereby giving CCP a stronger cash flow for new project acquisitions and portfolio expansion.
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