Treasury’s China vehicle has £350m spending spree

AIM-listed China Real Estate Opportunities, launched by Irish developer Treasury Holdings in 2005 and recently refloated, has bought properties in Shanghai and Hongqiao.

Ireland-based Treasury Holdings’ partially AIM-listed vehicle China Real Estate Opportunities revealed in a stock market announcement today that it has completed £350 million ($712 million) in property acquisitions in Shanghai and Hongqiao.

The fund has purchased City Centre Phases in Shanghai, a mixed-use investment property, and a development project in Hongqiao, close to Hongqiao airport, for £274.7m, with financing provided by Credit Suisse. The fund has also bought the centrally located 19-story office block Central Plaza in Shanghai for £72.8 million with financing provided by AAReal Bank.

The announcement follows China Real Estate Opportunities’ refloatation in July, after being suspended in February when shareholders voted to shift its base to Jersey from Luxembourg. CREO first listed on AIM in late 2005. The refloatation raised £259 million, giving it an initial market capitalization of £398m.

At the time of the refloatation, the company said it would be targeting seven acquisitions in Shanghai and Beijing at a cost total of around £416 million.

The announcement also detailed the appointments of Richard David and Richard Ding, both former Macquarie directors, to the positions of managing director and general counsel of Treasury Holdings China.