Investing Policy
November 30 2009 - 6:42AM
UK Regulatory
TIDMPACL
30 November 2009
Pacific Alliance China Land Limited
Investing Policy
Pacific Alliance China Land Limited ("PACL" or "the Company"), an
AIM-quoted investment vehicle focused on China, is pleased to
announce, in accordance with AIM Rule 8, its updated investing
policy:
1. Investment objectives
The Company's principal investment objectives are to provide its
shareholders with capital growth and a regular level of income, from
a diversified portfolio of property in Greater China and to achieve
above average returns for an acceptable level of risk. The Company
seeks to achieve these objectives by acquiring a portfolio of
diversified property assets in Greater China split among (i)
strategic investments in mid-size regional developers; (ii)
co-investments in attractive new development projects which the
Company's investment manager selects from its strategic partners; and
(iii) direct property acquisitions at distressed situation prices
from developers who need to raise funds for additional land
acquisition or to make full payment on existing land acquisition
contracts.
Investment Manager:
PACL is managed by Pacific Alliance Real Estate Limited, the
Company's investment manager (the "Investment Manager"). More about
the Investment Manager's management team is available here
http://www.pacl-fund.com/investor1_company.php. In addition, the
Company has established an investment committee (the "Investment
Committee"), responsible for considering and approving property
investments that the Investment Manager believes are suitable for
investment by the Company and comprised of individuals with property
investment, financial and business backgrounds and extensive local
experience. Details of the members of the Investment Committee are
available here http://www.pacl-fund.com/aboutus4.php.
2. Investment strategy
The Company invests and holds equity interests in a portfolio of
property assets in the residential, office, retail, hospitality and
industrial real estate sectors. This is comprised of strategic
investments in existing properties, co-investments in new
developments with strategic partners (which would have an intended
holding period of 18 to 36 months) and opportunistic acquisitions of
distressed assets (which would have an intended holding period of 12
to 18 months) which may be either substantially complete or completed
assets requiring a major lease-up or repositioning. The Company is
not restricted as to where it may invest within Greater China.
3. Investing policy
The Company adheres to the following investment policies and
restrictions:
Geographical and Sector Focus. The Investment Manager invests
approximately 85 per cent. of the Company's gross asset value ("Gross
Asset Value") in China's first, second and third tier cities.
Approximately 15 per cent. of Gross Aasset Value may be invested in
Hong Kong, Macau and Taiwan should the directors of the Company (the
"Directors") and the Investment Manager consider that such
investments offer potentially attractive returns. Whilst the
Company's approach is fundamentally opportunistic, the Investment
Manager invests approximately 50 per cent. of Gross Asset Value in
residential properties, approximately 20 per cent. in office real
estate and the remaining 30 per cent. equally among retail,
hospitality and industrial real estate.
Type of Investments. Investments are funded by way of cash. Ordinary
shares of the Company ("Ordinary Shares") will not be used as
consideration for any investment. The Investment Manager makes
investments through investee companies, which are special purpose
vehicles established offshore to hold investments ("Investee
Companies"). Investments may also be made using a Chinese domestic
holding entity with a pre-approved level of registered capital which
is licensed to enable foreign entities to acquire real estate in the
PRC.
Investment Size. The Company's individual investments range from $30
million to $60 million although initial investments may be smaller if
the Company anticipates follow-oninvestments may be required. No
single initial investment will exceed 20 per cent. of Gross Asset
Value at the time of investment.
Control of Investments. The Company seeks to own a substantial
interest in its investments or, where necessary, secure adequate
minority protection rights.
Realisation of Investments. The Company intends to exit individual
investments when the Investment Manager and the Investment Committee
believe realisation would be in the best interests of the Company and
consistent with its investment objective. The Company anticipates the
average holding period of investments will be between 12 and 36
months.
Borrowings. There is no limit in the articles of the Company as to
the amount of debt the Company may incur. As is typical with property
development and investment, Investee Companies may use leverage for
individual developments. The level of debt incurred may vary
depending on the laws and regulations pertaining to the debt market
with regard to any specific investment and the ability of the
relevant Investee Company to service the debt. The Investment Manager
has the authority under the investment management agreement between
the Company and the Investment Manager to arrange recourse borrowings
on behalf of the Company up to an aggregate maximum of 50 per cent.
of the Company's net asset value from time to time, calculated at the
time such borrowings are undertaken. All recourse debt incurred on
behalf of the Company above this level will require majority Board
approval.
Collective Investment Schemes and Cross-Holdings. The Company may not
invest more than an aggregate maximum of 10 per cent. of the Gross
Asset Value of the Company in units or shares in collective
investment schemes or in other listed closed-end investment funds.
Uninvested Funds. Cash pending investment, reinvestment or
distribution is placed in bank deposits, bonds or US
government-issued treasury securities, or in capital-guaranteed
schemes offered by major global financial institutions, in order to
protect the capital value of the Company's cash assets. In order to
hedge against interest rate risks or currency risk, the Company may,
where appropriate, also enter into forward interest rate agreements,
forward currency agreements, interest rate and bond futures contracts
and interest rate swaps and purchase and write (sell) put or call
options on interest rates and put or call options on futures on
interest rates.
Distribution Policy. Subject to the availability of cash and
reserves, the Company will seek, where circumstances allow, to
provide a regular level of income in the form of a dividend up to an
annual dividend yield of twelve per cent.
4. Life of Company
The Company does not have a fixed life but the Board considers it
desirable that shareholders should have the opportunity to review the
future of the Company at appropriate intervals. Accordingly, the
Board intends to convene an extraordinary general meeting of the
Company in 2015 where a special resolution will be proposed that the
Company continue as presently constituted. If the resolution is
passed, the Board intends that a similar resolution will be proposed
at an extraordinary general meeting to be convened each fifth
subsequent year thereafter. If any such resolution is not passed, the
directors of the Company will be required to formulate proposals to
be put to shareholders to reorganise, unitise or reconstruct the
Company or for the Company to be wound up.
For further information please contact:
+-------------------------------------------------------------------+
| MANAGER: | LEGAL COUNSEL: |
| Chris Gradel, Managing Partner | Jon Lewis, General Counsel |
| Pacific Alliance Group | Pacific Alliance Group |
| 16/F, St. John's Building | 16/F, St. John's Building |
| 33 Garden Road | 33 Garden Road |
| Central, Hong Kong | Central, Hong Kong |
| Tel: (852) 2918 0088 | Tel: (852) 2918 0088 |
| Fax: (852) 2918 0881 | Fax: (852) 2918 0881 |
| cgradel@pacific-alliance.com | jlewis@pacific-alliance.com |
| | |
|--------------------------------+----------------------------------|
| BROKER: | NOMINATED ADVISER: |
| Hiroshi Funaki | Philip Secrett |
| LCF Edmond de Rothschild | Grant Thornton Corporate Finance |
| Securities | Tel: (44) 20 7383 5100 |
| Tel: (44) 20 7845 5960 | Philip.J.Secrett@gtuk.com |
| Fax: (44) 20 7845 5961 | |
| funds@lcfr.co.uk | |
| | |
|--------------------------------+----------------------------------|
| MEDIA RELATIONS: | MEDIA RELATIONS: |
| Sophie Hoggarth | Andrew Walton/David Cranmer |
| Pacific Alliance Group | Financial Dynamics, London |
| Tel: (86) 21 6288 3788 | Tel: (44) 20 7269 7217 |
| shoggarth@pacific-alliance.com | |
| | Alastair Hetherington/Christine |
Pacific Alliance China L... (LSE:PACL)
Historical Stock Chart
From Jun 2024 to Jul 2024
Pacific Alliance China L... (LSE:PACL)
Historical Stock Chart
From Jul 2023 to Jul 2024
