Beijing Capital Land confirmed plans to expand their reach in Australia amidst more stringent measures on capital flows.
“We will continue to strengthen our presence in Australia, and this year we’re considering entering Melbourne,” South China Morning Post quoted Tang Jun, president of Beijing Capital Land. The company is now working on several projects in different parts of Australia including Sydney and Brisbane. The move has reinforced Beijing Capital Land as one of the leading Chinese developers in the country.
“For the long term, we are very positive on Australia, given its receptive stance towards Chinese immigrants and buoyant economic activities,” added Bryan Feng, head of investor relations at Beijing Capital Land.
The official also said that fresh capital control on Chinese real estate purchases overseas will not impact the company’s sales considerably. According to Feng, around 80% of its customers are Australian residents.
Beijing Land Capital notes that around 10 to 15% of annual contracted sales in 2018 and 2019 should come from Australian property projects – thanks to portfolio diversification. The company also added that it has been pursuing local bank loans to fund its projects in Australia on top of drawing support from offshore US dollar bonds.
The China Securities Regulatory Commission also reportedly approved Beijing Capital Land’s mainland share listing application. This means that the listing process has been pushed. The company expects the it will be listed successfully under the mainland stock exchange come 2018.
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