Shui On Land Ltd. (00272.HK) has shelved plans to spin off China Xintiandi Co. Ltd., saying it’s looking for other options.
The company had wanted to hive off the commercial property unit which owns an upmarket mixed-use development in Shanghai, the Hong Kong Economic Journal reported Thursday, citing chairman Vincent Lo.
The proposed spin-off, mooted in 2012, was expected to raise HK$7.8 billion (US$1 billion), media reports said at the time.
Xintiandi has a market value of HK$31 billion.
The spin-off plan is on hold indefinitely as Shui On Land explores other opportunities.
Xintiandi is in talks to sell the first and third phases of its Shanghai Corporate Avenue project, potentially worth a combined 10 billion yuan (US$1.61 billion), Lo said.
Lo said the projects have drawn potential domestic and foreign buyers. He expects a deal in June.
Meanwhile, Shui On Land is evaluating 110 billion yuan worth of assets with a view to offloading non-core properties.
The sale is expected to boost turnover and reduce funding costs.
Translation by Vey Wong
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