Franshion Property block fetches $564m on the HKSE

Franshion Properties China has raised $564 million via a private placement on Tuesday, with New China Life Insurance, Singapore's sovereign wealth fund GIC, and private equity firm Warburg Pincus investing in the Hong Kong-listed real estate developer.

Franshion Properties, which is controlled by Sinochem Corp, issued 1.6 billion shares at HK$2.73 per unit, representing a 9.9% discount to the June 8 closing price of HK$3.03 per unit, according to a filing on the Hong Kong Stock Exchange on Tuesday. The shares on offer represent 17.6% of the existing issued share capital.

The private placement launched amid a 36.5% jump in Franshion Properties' share price performance so far this year.

New China Life purchased 1.01 million shares, or 9.5%, and has become the company's second largest shareholder after Sinochem, the filing showed. GIC bought 698.1 million shares, boosting its stake to 6.5%, up from 3% prior to the share-sale.

Warburg Pincus meanwhile purchased 280.8 million shares, giving the private equity firm a 2.6% equity interest in the company, while Walter Kwok, the former chairman of Sun Hung Kai Properties, became a minority shareholder with a 0.70% stake.