Disposal of Minority Stake

24 Jun 2009 07:00



China Real Estate Opportunities plc

Disposal of minority stake

China Real Estate Opportunities plc ("CREO" or the "Company"), an AIM listed property company with an established investment and development property portfolio in China, today announces that it has completed the sale of its effective 5% minority stake in the City Center 5 Development, the luxury retail and office development project in Shanghai, to existing shareholder Sociedade de Turismo e Diversoes de Macau SA ("STDM"), for CNY95 million. This represents an 8.6% premium to the latest published valuation in local currency as at 31 December 2008.

CREO held a direct 10% interest in Loyal Ally Investments Limited ("LAI"), which equated to a 5% interest in the development project company, Lux China Development Company Limited which is the 50:50 joint venture company established by LAI and a subsidiary of Louis Vuitton, Giminvest, for the purpose of developing the City Center Development site. After the purchase of CREO's 10% interest, STDM now holds 100% of LAI.

Commenting, Ray Horney, CREO Chairman said: "The CREO Board is very pleased with the successful execution of the sale of its minority position in the City Center 5 development at a premium to valuation, particularly in current market conditions, and it highlights both the strength and quality of the portfolio and the Company's continued focus on leveraging value from its core investment and development assets." 

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Contact:

CREO

Ray Horney, Chairman

Tel: + 44 (0)1273 775225

Sarah Moriarty, Investor Relations 

Tel: +353 1 6189455

Matrix Corporate CapitalPaul Fincham, Rob Naylor Tel +44 (0) 203206 7000

 

Davy

Des Carville

Tel: +353 1 679 6363

Bankside Consultants

Simon Rothschild, Oliver Winters

Tel: + 44 (0)207 367 8888

Murray Consultants

Ed Micheau

Tel: + 3531 498 0300

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