BRIEF: China Jinmao disposes of Sanya Ritz-Carlton

Property developer China Jinmao Holdings Group Ltd.  (0817.HK) said  on Tuesday it disposed of its Ritz-Carlton Sanya Yalong Bay on South China’s Hainan Island through an asset securitization deal valuing the resort at 2.26 billion yuan ($323 million).

The Ritz-Carlton Sanya Yalong Bay is a five-star hotel that opened in 2008 with 446 guest rooms. It reported a profit of 58 million yuan last year, down 34% year-on-year. Its profit stood at 34.62 million yuan in the first half of this year.

Under the deal, Citic Securities issued 2.27 billion yuan worth of asset-backed securities tied to the property. Shanghai Jinmao, a wholly owned subsidiary of China Jinmao, has subscribed for 4% of those, with the remainder going to other professional institutional investors. China Jinmao said the asset securitization will maximize the property’s valuation and liquidity of its hotel assets.

Shares of China Jinmao opened down 0.8% at HK$1.21 on Tuesday. The stock is down 26% from its 52-week high.

By Lau Chi Hang

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