Treasury Holdings-backed China Real Estate Opportunities (Creo) is set to return £15 million (€17 million) to shareholders after realising almost £34 million from the sale of one of its properties, writes .
London-listed Creo said yesterday it was selling its 50 per cent stake in its Tangdao Bay joint-venture project to its partner, SIIC Shanghai Holdings, which is part of Shanghai’s government.
Creo will realise £33.8 million from the deal, which it said represented a 10.9 per cent premium to the price put on Tangdao Bay by independent valuers in June last year.
It intends to return some of the cash to shareholders and has committed to spending £15 million on a share buyback.
This means it will not go ahead with the planned issue of zero-dividend preference shares, the proceeds of which it was intending to use to buy back its ordinary shares.
Tangdao Bay is on China’s east coast, north of Shanghai.
Creo’s project consists of three integrated sites with combined hotel, residential and commercial development.
Two years ago, Creo paid £14 million for its 50 per cent interest in two of the sites.
