Property developer Treasury Holding's Asia unit, Treasury China Trust, is to buy Shanghai's Huai Hai shopping mall for €63.5 million.
The company said it would issue €29.8 million of convertible bonds to fund the purchase in China's financial capital and other acquisitions.
"With this latest acquisition, our asset portfolio in Shanghai will be increased to four properties, totaling in excess of 330,000 square metres of gross floor area under management," said Treasury China Trust chief executive Richard David.
The convertible bonds are worth S$2.10 per unit, which amounts to a 20 per cent premium on TCT's closing price on February 23rd.
"This represents our first move into the convertible bond market. The terms for the bond reflect the strong prospects for TCT over the short to medium term and follow our successful first equity offering in December 2010 which was substantially over-subscribed," said Mr David.
The convertible bonds are to be used to fund the Huai Hai mall and the previously announced Central Avenue mall in Qingdao.
