CPIL Canton Prop

    RNS Number : 6221A
  Canton Property Investment Limited
  04 August 2008
   

    Canton Property Investment Limited
    (the "Company" or "Canton Properties")

    Capital Structure

    Further to the announcement made on 30 June 2008 that the Company had completed the acquisition of the Canton Finance Centre Project
("CFC"), the Board of Canton Properties has undertaken a review of its capital structure as the Company currently has no bank debt.

    As the Company's portfolio of properties was valued at 31 December 2007 at RMB 6,528 million (US$956m), the Board has concluded that it
would now be appropriate to supplement the Company's capital structure with appropriate levels of secured property debt and/or equity
finance. Funds raised from such finance would partly be used for the continued development of its property assets and partly to reduce the
outstanding balance of the cash consideration due to the vendors of CFC which is due to be paid by 30 June 2012.

    The Company's annual report and accounts for the year ended 31 December 2007 mention that Guangzhou Tian Yuan Investment Management
Limited, an indirect subsidiary of the Company, has pledged the investment property owned by the Group to support borrowings (currently
standing at RMB 305 million) by Guangzhou Zhong Jin Export and Import Trade Limited and Guangzhou Fei Hang Electronics Equipment Limited,
companies independent of the Group. Mr Wong, Chairman of the Company, gave an undertaking in favour of the Company on 11 March 2008 that he
would fully discharge the mortgages within 30 days of the date of completion of the sale of CFC to the Company and would remove the
registration of the mortgages from the Government records in the PRC. The Company has agreed to defer Mr Wong's obligation to discharge
these mortgages until such time as the Company has obtained debt and/or equity finance and has paid to him that part of the total
outstanding balance of the cash consideration due to him as one of the vendors of CFC that is equivalent to the outstanding borrowings referred to above.


    For further information please contact:

    Canton Property Investment Limited

    Dennis Yau                                                                                                                            
+852 2219 9669


    Libertas Capital (Nominated Adviser)

    Jakob Kinde/Tim Murray                                                                                                      +44 20 7569
9650



This information is provided by RNS
The company news service from the London Stock Exchange
 
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