Treasury-backed firm raises €383m

Shares in the Treasury Holdings-backed China Real Estate Opportunities (CREO) will begin trading in London tomorrow.

The company said yesterday that it has successfully raised £259 million (€383 million) through a share placement that was oversubscribed.

The firm is raising the cash to buy commercial properties in Shanghai and Beijing.

CREO is also considering taking a listing on Dublin's IEX market as well as its listing on London's Aim market.

Real Estate Opportunities will own 15.9 per cent of CREO. Treasury Holdings, owned by developers Johnny Ronan and Richard Barrett, controls more than 50 per cent of Real Estate Opportunities. In a statement yesterday, CREO said that, based on its £7.56 share price, "there will be an enhancement to Real Estate Opportunities' net assets of £40 million".

The statement added that this is equal to 15.8p per Real Estate Opportunities share or 11.3 pence on a diluted basis.

Real Estate Opportunities is selling the Treasury Building in Shanghai to CREO for £16.1 million together with debts of £20.8 million. CREO will pay for this by issuing 2.13 million shares to Real Estate Opportunities. That transaction will bring Real Estate Opportunities' holding in CREO to 8.4 million shares.

Separately, Real Estate Opportunities announced that its board is considering buying properties from Treasury Holdings through the issue of new shares to the company. At the same time it will issue a corresponding number of shares to third party investors to raise cash to fund further property deals.

Treasury Holdings' properties in Dublin include the Treasury Building on Grand Canal Street, Spencer Dock and a range of commercial premises throughout the city's main business district.