Treasury Holdings-backed China Real Estate Opportunities (Creo) is buying two sites with a Chinese company at the location of this year's Olympic sailing events near Shanghai for €19 million.
Creo said yesterday that it had bought two sites at Tangdao Bay, Qingdao, in partnership with Shanghai Industrial Investment Corporation (SIIC), the real estate investment arm of the Shanghai municipal government.
The sites are next to its existing property at Tangdao Bay, which will host the sailing events in the Beijing Olympic Games.
Creo said it was paying £14 million sterling (€18.8 million) for its 50 per cent interest in the two sites.
"The plan is to develop the three sites as a single integrated project, with the completed development having a total gross floor area of 430,167sq m (4.6 million sq ft), comprising residential, retail and hotel components, with an estimated completion value in excess of £360 million," Creo said in a statement.
London-listed Real Estate Opportunities (Reo) owns 15.9 per cent of Creo. Treasury Holdings, owned by developers Johnny Ronan and Richard Barrett, controls more than 50 per cent of Reo. Creo is also listed in London.
The company owns commercial properties in Shanghai, including the Treasury Building, which it bought from Reo in July for £16.1 million in cash and more than £20 million in debts.
The group raised more than €380 million when it listed on London's Alternative Investment Market (AIM) last summer. At the time it said it intended using the cash to buy commercial properties in Shanghai and Beijing.
Richard David, managing director of Treasury Holdings China, Creo's investment manager, said the deal reaffirmed the company's commitment to both SIIC and the Qingdao market.
