China Real Estate Opportunities (CREO) has bought one of China’s biggest western-style shopping centres for £243.1m.
The AIM-listed property investor, which is majority owned by Treasury Holdings, has agreed to buy the Xidan Centrepoint Shopping Centre in Bejing from China Metallurgical Construction Group, subject to shareholder approval.
The 2m sq ft (194,949 sq m) property, which is still under construction, comprises 1.1m sq ft (102,945 sq m) of retail space, 170,695 sq ft (15,858 sq m) of office space and a 372-bedroom luxury hotel. The entire project is due for completion in December 2007.
CREO has agreed to pay the £243.1m purchase price in stages, starting with an initial £12.2m deposit, taken from existing cash resources. To finance the remainder of acquisition, CREO plans to raise funds via a placing of shares in the New Year.