CapitaMalls Asia Acquires Chengdu Project For Rmb554.2m
CapitaMalls Asia (CMA) has bought an integrated development in Chengdu comprising retail, residential and office components for Rmb554.2m from CapitaRetail China Development Fund II, of which CMA has a 45% shareholding. This announcement came swiftly in the wake of last month’s purchase of Meili Mall for Rmb459.9m as CMA tries aggressively to increase its presence and exposure in China, targeting for the China to make up a respectable 40% of the total value of its properties.

The acquisition is being effected through the purchase of a 100% stake in Growing State Hldgs (GSH), a Hong Kong-incorporated investment holding company whose fully-owned China unit is developing the integrated project. The Rmb554.2m cash consideration took into account, among other factors, the net tangible assets of GSH of about $9.5m as at Jan 31, 2010, and a shareholder’s loan of about $92.5m from CRCDF II to GSH. CMA estimates its total expenditure on the development at about Rmb1.79b and it will have a total GFA of 201,813 sqm and about 1,348 car park lots when completed.

China Shoe Soles Manufacturer Qingmei Launches IPO
Qingmei Group Hldgs, an original design manufacturer of mid-end and high-end sports shoe soles manufacturer in China, has launched its IPO of 184m shares at $0.31 each for a SGX mainboard listing. The offer comprises 2m public-offer shares and 182m placement shares. The company, whose products are sold to sports shoe manufacturers in China, has a base of some 75 customers. The latter sell their shoes to end-customers in China and overseas under brand names such as Xtep and 361°.

Of the net proceeds of $44.1m to be raised, $29.6m will be used for expansion of production capacity. Another $13.8m will go towards construction of a R&D centre and the remainder will be used for general working capital. Qingmei saw revenue growth of 32.9% to about Rmb833.8m in FY09, up from Rmb627.4m in FY08. Net profit increased from about Rmb134.4m in FY08 to about Rmb182.5m in FY09, a 35.8% rise. The IPO opens today and closes on March 15. Trading of the shares is expected to commence on March 17.

CSC Hldgs Bags Deals Worth $70m
Mainboard-listed construction and engineering specialist CSC Hldgs yesterday announced that it has in the past 3 months won more than $70m worth of geotechnical and foundation contracts. Included in these new orders are $40m in infrastructure projects and $20m in residential and public sector projects. As at the end of February, its order book stands at $127m.

In a press statement, company CEO See Yen Tarn said a recent restructuring that the company undertook during last year’s downturn was key to securing these contracts and that the company has been busy developing its presence in Malaysia and Vietnam, both markets whose contributions are expected to increase significantly in the medium term.