September 27, 2021, China Olympic GardenGroup Co., Ltd. (China Olympic Garden: 03883.HK) announced that it has entered into a subscription agreement with Successful Lotus, under which Successful Lotus will subscribe for 107875000 new shares of the Olympic Garden at HK $3.708 each, involving a capital of HK $400m, accounting for about 3.64 per cent of the total number of shares issued. According to the information, Successful Lotus is an investment company wholly owned by Mr. Li Jiajie, Executive Director and Chairman of Henderson Land Development Company Limited (Henderson: 00012.HK), a well-known real estate development enterprise in Hong Kong.
On the same day, Guo Ziwen, chairman of the board of directors of the China Olympic Garden, will subscribe for 161813000 new shares of HK $3.708 each, involving a capital of about HK $600m, accounting for about 5.46 per cent of the total number of shares issued. The net proceeds of the above subscription will be about HK $998 million and will be used for the working capital and general corporate purposes of the China Olympic Garden.
It is reported that since the beginning of this year, Chairman Guo Ziwen has successively increased his stake in the China Olympic Park three times, involving a total capital of about 45 million Hong Kong dollars.
The two sides join hands in ploughing the Dawan area.
Chinese Olympic Garden and Henderson Land DevelopmentThe project cooperation has been laid before. As early as April 2018, the China Olympic Park formally signed a strategic cooperation framework agreement with Henderson Land Development, and the Olympic Park introduced Henderson for the first time to develop Guangdong-Hong Kong-Macau Greater Bay Area's urban renewal project-Henderson Xueyuan No. 1 in Guangzhou Olympic Garden. After three years of development, the project opened on September 18, 2021, and created a good result of "selling more than 1 billion in the first 2 hours", proving that the value of the project has been valued by the market for a long time, and laying the foundation for the follow-up cooperation between Olympic Park and Henderson.
It is reported that in the future, the Olympic Park will continue to expand to the development and cooperation of urban renewal projects in the Greater Bay area.
The performance has gone up against the trend this year.
Since the beginning of this year, real estate regulation and control policies have been introduced intensively, and industry regulation has continued to be tightened. China Olympic Garden achieved property contract sales of about 87.55 billion yuan in August, an increase of 23% over the same period last year. More than 20 institutions at home and abroad issued research reports on the steady improvement of the future performance of the Olympic Park and the prospect of sustainable development.
At the same time, the China Olympic Park ranked 245th and 93rd respectively in the list of "Top 2021 Chinese Enterprises" and "2021 Top 2021 Chinese Private Enterprises" announced last week by the China Enterprise Federation and the all-China Federation of Industry and Commerce.
Or will enter the profit release period.
China Olympic Garden has been involved in urban renewal in Dawan area as early as 2011. as of June 30, 2021, the total value of land storage in China Olympic Garden has reached 1.3482 trillion yuan, of which the value of the right part is 593.9 billion yuan. According to the China News, the China Olympic Park has more than 70 urban renewal projects at different stages, with resources available for more than 750 billion yuan, of which the Greater Bay area accounts for 99%, and more than 50 projects are being promoted to varying degrees. Urban renewal has gradually become the "ballast stone" of the Orchard soil storage.
With the accelerated transformation of urban renewal projects, the Chinese Olympic Garden may enter a period of profit release. Between 2021 and 2024, the urban renewal project of the Olympic Garden in China is expected to have a sales value of about 242 billion yuan. In the first half of this year, the urban renewal of China's Olympic Garden has successfully transformed the value of goods worth 13.5 billion yuan, and the value of goods for the whole year is expected to be 40 billion yuan.