Shui On Construction and Materials Co or SOC plans to increase investment in Chinese real estate market and to gradually fade away from cement market, according to CEO Wong Kun To. The firm is seeking investment partners in a new private equity fund with capital ranging from US$200m to US$300m and that the fund’s details will be unveiled at the middle of November, Wong said.
The Hong Kong-listed firm’s property business will not conflict with that of afflicted company Shui On Land Co, because SOC’s projects will be principally involved in small-sized and uncompleted properties. Wong added that SOC aims to withdraw from the cement business by the end of 2011, and it currently holds a 45% stake in Lafarge Shui On Cement, which contributed HK$63m or 12.2% of SOC’s net profit in the first half of this year.
SOC also targets RMB3bn of contracted sales revenue for 2010, and the revenue will include RMB1bn derived from sales in a villa project in Beijing and a commercial project in Chongqing, sources reported.