Lovells

Lovells has advised on the listing of Central China Real Estate, the first Chinese real estate listing in Hong Kong this year, sponsored by Morgan Stanley   The Hong Kong IPO of Central China Real Estate Limited, a leading residential developer in Henan Province in China, raised US$176 million in the first Chinese real estate listing in Hong Kong for more than six months. Central China is issuing 500 million new shares, representing 25% of its share capital.  

For almost 15 years, Central China has successfully developed residential properties in Henan Province, in particular targeting customers in the mid- to high-end market. The company has 4.8 million square metres (51.7 million square feet) of properties in 43 projects in 19 cities in Henan for development. Singapore’s CapitaLand, the largest property developer in Southeast Asia and a strategic investor of Central China, holds a 27.1% stake at the time of listing.  

The Lovells team was introduced to Central China by Morgan Stanley, sole global coordinator, sponsor and bookrunner, to advise on the IPO. The team was led by partners Jamie Barr and Terence Lau, and included U.S. securities specialist, consultant Thomas Tarala.  

Commenting on the deal, Jamie Barr, partner and head of Asia Corporate, said:

“We are delighted to be working with Central China and Morgan Stanley on this successful Hong Kong IPO. This is the second China real estate IPO on which Lovells has worked with Morgan Stanley. The first was Country Garden, which listed on the Hong Kong Stock Exchange in April 2007. This transaction reaffirms our reputation within the real estate sector and more broadly for working with leading investment banks on headline IPOs across the region."