Ping An Real Estate Becomes Second Largest Shareholder of Landsea Green Properties
Landsea to Strengthen Investment and Financing Ability, Promote Asset-light Strategy, and Accelerate Market Share Expansion
Hong Kong, November 4, 2015 – Landsea Green Properties Co., Ltd., (“Landsea Green Properties” or the “Company”, stock code: 00106), is pleased to announce that Pingan Real Estate Capital Limited (“Ping An Real Estate”) has become its second largest Shareholder. The strategic cooperation between the two parties will optimize the Company’s shareholding structure and asset-light strategy, as well as promote its investment and financing ability. Both parties will continue to cooperate in real estate development projects in the PRC and overseas and in financing services so as to bring impetus to Landsea Properties’ business internationalization. The strategic cooperation will enable the Company to accelerate its growth and expand its market share, to benefit from the property industrys transformation and consolidation.
Pursuant to the Subscription Agreement, Landsea Properties will issue approximately 327 million Subscription Shares and Perpetual Convertible Securities in the aggregate principal amount of HK$130 million to a wholly-owned subsidiary of Ping An Real Estate. The Subscription Price is HK$0.6529 per Subscription Share. The Subscription Shares represent approximately 9.9% of the issued share capital of the Company as enlarged by the issue of the Subscription Shares, thus making Ping An Real Estate the second largest Shareholder of the Company. As for the Perpetual Convertible Securities, as the Initial Conversion Price is HK$0.7508, assuming an exercise in the full Conversion Right at the abovementioned initial Conversion Price, the Company’s ownership held by Ping An Real Estate will increase to 14.37% (calculated by the share capital as enlarged by the issue of the Subscription Shares and the issuance of the Conversion Shares upon full conversion of the Perpetual Convertible Securities). Net proceeds of approximately HK$340 million will be used to expand the Company’s property business or for general corporate purposes.
Ping An Insurance (Group) Company of China, Ltd.(Ping An Group), one of the Global 500 Leading Companies, is an integrated, compact, multi-functional financial services group with services that include insurance, banking, and investment. Ping An Real Estate is a subsidiary of Ping An Group with registered capital of RMB10 billion that focuses on the real estate investment business. As Ping An Group’s main platform for real estate investment management, Ping An Real Estate has a scope of business that covers commercial property, mixed-use development, industrial logistics segment, strategic investment, outbound investment and senior housing and leisure community.
Previously, the Company and Ping An Real Estate established a long-term stable cooperative partnership to develop real estate projects. Deepening the cooperation between the Company and Ping An Real Estate from the project level to the equity level will lay a solid foundation for both sides to expand all-round strategic cooperation.
Mr. Tian Ming, Chairman of the Group and Chairman of the board of Landsea Green Properties, said, “Landsea Green Properties and Ping An Real Estate share the same concept in green real estate development and each enjoys complementary advantages in operational capacity and resources” Mr. Tian added, “Landsea Green Properties has been adopting product differentiation and asset-light strategies in recent years . Cooperating with Ping An Real Estate will facilitate the Companys strategic transformation towards an asset-light strategy. Leveraging Ping An Real Estate and Ping An Groups strong integrated financial services platform and investment abilities, we will continue to conclude more cooperative real estate projects in China and overseas, and promote cooperation in various fields of financial services such as mezzanine financing and other areas of financial services. We are confident that these measures will enhance the Company’s competitiveness in the real estate industry and its ability to integrate resources, and will also accelerate our development and expand our market share.”
Mr. Zhou Yimin, Chairman and Chief Executive Officer of Ping An Real Estate, said, "Landsea Green Properties is our long-term cooperation partner. The deepening cooperation in terms of equity interest is a recognition of the Company’s leading position in the green technology differentiation strategy in PRC real estate industry. Combining Ping An Group’s strong integrated platform and investment capacity with Landsea Green Properties’ strategy of product differentiation, profit diversification and remaining asset-light, we are confident that the cooperation will bring satisfactory returns to both parties. "