Sept. 25 (Bloomberg) -- Sino Land Co., which led a group of builders in the $584 million acquisition of a Hong Kong building site this month, plans to raise HK$4.3 billion ($553 million) in a share sale to buy more land in the city and in China.
Sino Land parent Tsim Sha Tsui Properties Ltd. and shareholder Ng Teng Fong will sell 220 million Sino shares for HK$19.576 each, before buying the same number of new Sino shares at the same price, Sino said in a Hong Kong stock exchange filing.
Sino Land is seeking to tap a surge in property prices and rents in Hong Kong, where the longest economic expansion in almost a decade has fuelled demand for new apartments and office space. The company and its partners plan to invest HK$6 billion developing the residential site they bought last week.
The builder's shares have gained 16 percent this year, lagging the 33 percent gain of the benchmark Hang Seng Index. The stock rose 2.7 percent yesterday to HK$21.05.
Sino is seeking to increase investment in China, it said in its earning announcement statement last week. The company is unusual among Hong Kong developers in lacking an ``aggressive China strategy,'' UBS analyst Eric Wong wrote in a Sept. 11 report.
JPMorgan Chase & Co. is arranging the sale.
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