Shimao shares offering 2 billion push for four real estate projects

After each reporter Li one weeks of waiting, the Shimao shares (600823, the former closing price of 18.49 Yuan) the non-public offering plan finally "broken cocoon and out." The plan shows that the company intends to 13.81 yuan/share price to the Securities Investment fund management companies, such as not more than 10 specific objects issued about 150 million shares. The funds collected will not exceed 2 billion yuan after deducting the issue fee, of which 1.7 billion yuan is intended to be used for the development and operation of four real estate projects in Qingdao World Olympic Building, Jiangsu Changshu Shimao Century Center, Suzhou Shimao Canal City Commercial and Beijing Shimao International Center. The Company believes that the above project has good market development prospects and economic benefits, can further enhance the company's competitiveness, improve corporate profitability, increase profit growth. In addition, the remaining $300 million is intended to supplement the liquidity of the company, of which 150 million are used for the decoration costs and operating liquidity of the company's department stores and operating properties, and the other 150 million yuan to supplement the operating liquidity of the company and its affiliated project companies.　　The company said that the use of this part of the funds will increase the company's liquidity ratio, reduce the company's financial risk, and can save the corresponding financial costs.　　The announcement shows that the company's fund-raising investment in the four projects have a better profit effect, which Qingdao world Olympic building and Jiangsu Changshu Shimao Century Center project scale larger, worthy of concern. Qingdao World Austrian Building project is located in Qingdao South District, the project is expected to build 246,900 square meters, the total project investment is expected to be 3.988 billion yuan. At present, the region's residential sales price of 20,000 yuan ~3.5 million/square meters, and office prices at 25,000 yuan/square meters, with high economic benefits. The procedures required for the development of the project are currently being processed and are scheduled to commence at the end of 2009.　　According to the company estimates, the project is expected to achieve sales of 4.646 billion yuan, sales gross profit margin of about 34%, rental property investment recovery period of about 8 years, the project is expected to achieve a comprehensive yield of 15.39%, with better economic viability. Jiangsu Changshu Shimao Century Center project is located in Changshu City, northeast of the Old City, is the central business district planning in Changshu City, the project construction area of 981,500 square meters, the total investment limit of 4.494 billion yuan, the project has been started, the investment to raise 400 million yuan, the remaining funds will use its own funds, Bank loans or pre-sale income and other ways to solve.　　The company forecast the project to achieve sales of 5.419 billion yuan, sales gross profit margin of about 42%, and rental properties, payback period of about 12, the project comprehensive yield of 11.41%. In particular, the company pointed out that the majority of the Non-public offerings for commercial real estate project development and operation, its economic benefits need a certain time to reflect, but the fund-raising investment project profitability is strong, the next 2-3 years will bring huge profits for the company.