Sat, Nov 05, 2011 - Page 11 News List

Farglory targets overseas projects to boost earnings

LOOKING ABROAD:The property developer predicted its overseas ventures would make up 10 percent of sales in 2011, as it looks to develop its global competitiveness

Bloomberg

Farglory Group (遠雄集團), owner of the nation’s biggest developer, said its offshore operations would account for more than half of its sales within a decade as it expands and plans to list an overseas real-estate joint venture by 2015.

The company operates in countries including the US, Abu Dhabi and China, where it is developing properties with Shanghai-based Shimao Property Holdings Ltd (世茂房地產控股) and Hong Kong’s Henderson Land -Development Co (恒基兆業地產). The joint venture, called Straits Construction Investment (Holdings) Ltd (海峽建設投資有限公司), could go public in Hong Kong, Farglory chairman Chao Teng--Hsiung (趙藤雄) said.

Farglory, which said all of its more than 600 real-estate projects in the past four decades were profitable, is aiming to tap its local experience to expand revenue sources beyond Taiwan. Its overseas projects are expected to make up 10 percent of sales this year, he said.

“The group will expand offshore in stages to increase -competitiveness on the global front,” Chao said in Taipei on Thursday. “Our experience in Taiwan and demand from clients encouraged us to expand our business scope to the mainland, the US, France and Abu Dhabi.”

Shares in Farglory Land Development Co (遠雄建設), the unit that is the nation’s biggest publicly traded developer, jumped 2.4 percent to NT$52.30 at the close of trading yesterday, the highest since Sept. 22. Farglory Free Trade Zone Investment Holding Co (遠雄自貿港投資控股), an air cargo and warehouse unit, surged 1.6 percent. The benchmark TAIEX gained 1.9 percent.

Farglory Land owns 27 percent of Straits Construction, which plans to start building residential and commercial real estate in China next month in Nanjing Hexi New Town in Jiangsu Province and Fuzhou Pingtan Integrated Pilot Area in Fujian Province.

The two projects could boost Farglory Land’s earnings by NT$10 to NT$15 per share, Regina Lee (李佳桂), a Jih Sun Securities Investment Consulting Co (日盛投顧) analyst, said by telephone on Thursday.

Farglory Group, with NT$300 billion (US$9.99 billion) in property assets in Taiwan, including investments in the financial, logistics and leisure industries, also plans to list Farglory Life Insurance Co (遠雄人壽), Far Glory Hotel Co (遠雄悅來飯店) and a property company that invests in China within five years.

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