Coastal divests seven development projects

Published: Guandian | January 17, 2018

Coastal Greenland Limited ("Coastal") has announced that its shares are placed in a trading halt on the Hong Kong Stock Exchange pending the release of an official announcement in relation to the sale of seven of the Coastal's property development projects. The seven projects span more than 3.13 million square metres across five cities. The purchaser, Yuzhou Properties, is expected to pay 3.8 billion Renminbi for the projects. The transaction is still pending regulatory and shareholder approval.

"A portfolio rationalization is part of our plan to shift the focus towards urban renewal redevelopment projects. The move is in line with the Board's strategy to deleverage and improve our capital structure, all the while providing the company with sufficient cash for future investments, especially in light of expectations of further tightening of China's monetary policy," Mr Xianglong Xia, C.E.O. of  Coastal Greenland comments.

Coastal Greenland has continually aligned its business strategy with market conditions and regulatory shifts, having weathered the 1997 Asian Financial Crisis and the economic downturn of the early 2010s. With China's housing market in retreat and regulatory support shifting strongly in favor of new economy industries, the Group will use the opportunity to re-evaluate its business strategy. 

"Real estate development has always been Coastal Greenland's main line of business. We are readjusting our portfolio to concentrate on investments in land parcels for future renewal in first-tier cities in Greater China. Urban renewal is an important part of city development and this is where our expertise lies," Mr Xia remarks.