Guangzhou-based developer China Aoyuan Property Group Ltd. (03883.HK) will consider securitizing its investment properties when the segment contributes an annual rental income of more than 300 million yuan (US$48.5 million).
“We have considered securitizing our investment properties to maintain a healthy cash flow to support our rapid growth,” Aoyuan chairman Guo Ziwen said in a post-results briefing Tuesday, without giving a time frame.
The company’s rental income grew to 48.71 million yuan last year from 31.21 million yuan a year earlier, according to a stock exchange filing Tuesday.
Sales of commercial properties amounted to 2.12 billion yuan last year, accounting for 38 percent of the company’s total revenue. The ratio is expected to grow to 45 percent this year and will stay above the 40 percent level in the coming years, Guo said.
The company has set its contracted sales target at 15 billion yuan for this year, up by half from last year’s actual contracted sales of 10 billion yuan. Its budget for land acquisition this year is 5 billion yuan. The company said its existing land bank, which covered 11.18 million square meters of gross floor area at the end of last year, is enough for the next five to seven years.
– Contact HKEJ at digest @ejinsight.com