HONG KONG, April 28, 2015 /PRNewswire/ -- Joy City Property Limited ("Joy City Property" or the "Company", HKEx Code: 0207) announced today that it has officially completed the Acquisition and Rights Issue, following the completion of acquisition of six Joy City complexes in Beijing, Shanghai, Tianjin, Yantai and Shenyang along with a commercial property in Beijing, and non-controlling interests in two properties located in Beijing and Shanghai by the Company on 4 December 2014.
The purpose of the Rights Issue is to raise funds to pay the remaining 50% of the transaction consideration for acquisition of Joy City complexes last year. The Rights Issue, offered at a subscription price of HK$1.35 per Rights Share with applications for over 5 billion Rights Shares received, achieved an oversubscription of approximately 5.9%, successfully completing its financing goals as planned. Among those Rights Shares, approximately 3.2 billion Rights Shares subscribed by COFCO Corporation at a subscription price of HK$ 4.3 billion, representing a shareholding of 66.83% after completion of the Rights Issue; approximately 400 million Rights Shares subscribed by GIC at a subscription price of HK$ 500 million, representing a shareholding of 8.17% after completion of the Rights Issue. After completion of the Rights Issue, the net proceeds will be used to pay the remaining consideration of the Acquisition, and the remaining proceeds will be used as general working capital of the Company. With the completion of the Rights Issue, the Company's asset acquisition of the Joy City is successfully completed.
The completion of the transaction, Rights Issue and debt financing marks the further integration of commercial property asset platforms under COFCO Corporation. Joy City Property acquired quality commercial complexes and properties including Joy City through the transaction, which effectively improved the profitability and sustainable development of the Company, laying a solid foundation for further growth and development of Joy City. The completion of the transaction, debt issue and Rights Issue further shows the recognition and support of shareholders and investors for the prospects of the Company and Joy City brand, further establish the communication between the Company and capital market, as well as enhances the brand influence of the Company, thus laying a solid foundation for sustainable development of Joy City in the future.
Mr Zhou Zheng, the Chairman of the Company said, "Through the acquisition and financing, Joy City Property formed an asset portfolio under the brand of Joy City with the focus on high quality retail and rental properties, which will generate sustainable property income and stable cash flow. Through the transaction, all quality retail properties under the brand of Joy City developed by COFCO Corporation over years were injected into Joy City Property, thus developing the Company into a leading Chinese retail property developer and operator in the international capital market."
As a flagship brand of commercial property under COFCO Corporation, Joy City brand positioned themselves to become a "young, fashionable, trendy and quality" spirit of shopping mall, mainly targeting young middle class of 18-35 in age. Joy City currently has completed 7 Joy City complexes in Beijing, Shanghai, Tianjin, Shenyang, Chengdu and Yantai. In terms of business model, with the emphasis on shopping mall, Joy City organically integrated one or more formats including office space, hotel and hotel accommodation. The synergy of various formats is fully played through the combination of selling properties and investment properties, thus maximizing the value of complexes.
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About Joy City Property
Joy City Property is a commercial property listing company under COFCO Corporation, business of which covering commercial property, residential property, hotel, tourism property and regional comprehensive development. With the enterprise commission of "providing premium landscaping living environment and high quality service, leading a modern and fashion life style, and gradually became a brand property leader with sustainable development capability in China", the Company successfully built an urban complex under the brand of Joy City with the principle concept of " juvenility, fashion, modern and taste", and developed various products, including the top-level scenery series integrated with excellent natural resources and buildings, international living community series gathering international life styles and Chinese spirit, urban boutique resident series facing to city elites, top-level high-end hotels with international influence, such as MGM Grand Sanya, Regis Sanya, Waldorf Astoria Beijing, Beijing W Hotel, and the National Tourist Holiday Resort in Yalong gulf, Sanya with the reputation of "Oriental Hawaii", which formed a gorgeous property territory with rich formats, perfected product categories and balanced capital structure.
Should you have any inquiries, please contact:
iPR Ogilvy & Mather
Callis Lau / Karen Tse / James Wong / Maggie Chui
Tel: (852) 2136 6952 / 2136 6950 / 3920 7642 / 2136 8059
Fax: (852) 3170 6606
Email: joycity@iprogilvy.com
