Beijing Huaye Realestate to raise RMB 2 bln

Aug. 11, 2009 (China Knowledge) - Beijing Huaye Realestate Co Ltd<600240>, a Beijing-based property developer, today announced that it plans to issue up to 300 million new shares for RMB 7.26 per share or RMB 2 billion in total, sources reported.

After the issuance, a Shenzhen-based shareholder of Huaye will see its shareholding drop to 15.87% from the previous 26.25%.

Beijing Huaye Realestate will invest RMB 1.3 billion of the proceeds from the issuance in a mixed-use property project located in Tongzhou District, Beijing. The project, which has a land area of 253,000 square meters and a potential floor area of 826,100 sq m, is expected to generate sales revenue of RMB 7.25 billion and to realize RMB 1.06 billion in after-tax net profit. The firm will also inject RMB 400 million in a project located in Dalian.

Reportedly, Beijing Huaye Realestate today said that its estimated net profit for the first half of this year is RMB 40.31 million, whereas it earned RMB 23.2 million in the same period of last year.