23rd Apr 2015 13:36
LONDON (Alliance News) - Pacific Alliance China Land Ltd Thursday reported a net asset value of USD295.3 million at the end of 2014, representing USD2.60 per share and a 5.6% increase year-on-year, as it works to sell off some of its investments.
The closed-end investment company made an investment income of USD23.2 million in 2014, up from USD14.5 million in 2013.
It said that it has ceased making new investments since July and is focusing instead on realising existing investments, maximising the internal rate of return from its portfolio and returning realisation proceeds to shareholders.
Net asset value for the company's investment in Dalian Wanda Commercial Properties Co Ltd increased by 28% year-on-year, driven by Dalian's IPO and listing on the Hong Kong Stock Exchange in December, the company said, adding that it plans to sell its stake in the business in the first quarter of 2016.
In November, Pacific said it had sold its 4.6% interest in Singaporean Forterra Trust, receiving cash proceeds of USD20.3 million.
Since the year end, it has also earned back USD35 million with a profit of USD13.9 million from its bridge loan to Times Property Holdings Ltd.
Pacific said it is currently in discussions in respect of selling the residential land near the Shanghai Disneyland development it acquired through its acquisition of a 30% stake in Project Malls in 2009, as well as selling its 40% stake in luxury residential block Project Diplomat, for which it expects the transaction to be closed in the second half of 2015.
The company also anticipates a sale of its partial interest in three residential units at Beijing Olympic Park in the second half of 2015.
"China's economic growth slowed to its lowest level in 24 years in the fourth quarter of 2014, prompting a shift in monetary policy and an easing of restrictions by the government to head off a sharper economic downturn. The easing of property purchase restrictions in late September saw the beginning of a gradual recovery in sales volumes and prices across China, and also contributed to a stock market rally in the property sector at the end of the year," Managing Director Patrick Boot said in a statement.
"Together with the People's Bank of China's decision to cut interest rates for the first time in two years and an expectation of further cuts in both interest rates and reserve ratio requirements in 2015, we expect to see the cost of borrowing decrease and further economic stimulus that might benefit the property sector in the year ahead," he added.
Shares in Pacific were trading flat at 2.05 pence Thursday afternoon.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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