Investing Policy
(Thomson Reuters ONE) - 30 November 2009 Pacific Alliance China Land Limited Investing PolicyPacific Alliance China Land Limited ("PACL" or "the Company"), anAIM-quoted investment vehicle focused on China, is pleased toannounce, in accordance with AIM Rule 8, its updated investingpolicy:1. Investment objectivesThe Company's principal investment objectives are to provide itsshareholders with capital growth and a regular level of income, froma diversified portfolio of property in Greater China and to achieveabove average returns for an acceptable level of risk. The Companyseeks to achieve these objectives by acquiring a portfolio ofdiversified property assets in Greater China split among (i)strategic investments in mid-size regional developers; (ii)co-investments in attractive new development projects which theCompany's investment manager selects from its strategic partners; and(iii) direct property acquisitions at distressed situation pricesfrom developers who need to raise funds for additional landacquisition or to make full payment on existing land acquisitioncontracts.Investment Manager:PACL is managed by Pacific Alliance Real Estate Limited, theCompany's investment manager (the "Investment Manager"). More aboutthe Investment Manager's management team is available herehttp://www.pacl-fund.com/investor1_company.php. In addition, theCompany has established an investment committee (the "InvestmentCommittee"), responsible for considering and approving propertyinvestments that the Investment Manager believes are suitable forinvestment by the Company and comprised of individuals with propertyinvestment, financial and business backgrounds and extensive localexperience. Details of the members of the Investment Committee areavailable here http://www.pacl-fund.com/aboutus4.php.2. Investment strategyThe Company invests and holds equity interests in a portfolio ofproperty assets in the residential, office, retail, hospitality andindustrial real estate sectors. This is comprised of strategicinvestments in existing properties, co-investments in newdevelopments with strategic partners (which would have an intendedholding period of 18 to 36 months) and opportunistic acquisitions ofdistressed assets (which would have an intended holding period of 12to 18 months) which may be either substantially complete or completedassets requiring a major lease-up or repositioning. The Company isnot restricted as to where it may invest within Greater China.3. Investing policyThe Company adheres to the following investment policies andrestrictions:Geographical and Sector Focus. The Investment Manager investsapproximately 85 per cent. of the Company's gross asset value ("GrossAsset Value") in China's first, second and third tier cities.Approximately 15 per cent. of Gross Aasset Value may be invested inHong Kong, Macau and Taiwan should the directors of the Company (the"Directors") and the Investment Manager consider that suchinvestments offer potentially attractive returns. Whilst theCompany's approach is fundamentally opportunistic, the InvestmentManager invests approximately 50 per cent. of Gross Asset Value inresidential properties, approximately 20 per cent. in office realestate and the remaining 30 per cent. equally among retail,hospitality and industrial real estate.Type of Investments. Investments are funded by way of cash. Ordinaryshares of the Company ("Ordinary Shares") will not be used asconsideration for any investment. The Investment Manager makesinvestments through investee companies, which are special purposevehicles established offshore to hold investments ("InvesteeCompanies"). Investments may also be made using a Chinese domesticholding entity with a pre-approved level of registered capital whichis licensed to enable foreign entities to acquire real estate in thePRC.Investment Size. The Company's individual investments range from $30million to $60 million although initial investments may be smaller ifthe Company anticipates follow-oninvestments may be required. Nosingle initial investment will exceed 20 per cent. of Gross AssetValue at the time of investment.Control of Investments. The Company seeks to own a substantialinterest in its investments or, where necessary, secure adequateminority protection rights.Realisation of Investments. The Company intends to exit individualinvestments when the Investment Manager and the Investment Committeebelieve realisation would be in the best interests of the Company andconsistent with its investment objective. The Company anticipates theaverage holding period of investments will be between 12 and 36months.Borrowings. There is no limit in the articles of the Company as tothe amount of debt the Company may incur. As is typical with propertydevelopment and investment, Investee Companies may use leverage forindividual developments. The level of debt incurred may varydepending on the laws and regulations pertaining to the debt marketwith regard to any specific investment and the ability of therelevant Investee Company to service the debt. The Investment Managerhas the authority under the investment management agreement betweenthe Company and the Investment Manager to arrange recourse borrowingson behalf of the Company up to an aggregate maximum of 50 per cent.of the Company's net asset value from time to time, calculated at thetime such borrowings are undertaken. All recourse debt incurred onbehalf of the Company above this level will require majority Boardapproval.Collective Investment Schemes and Cross-Holdings. The Company may notinvest more than an aggregate maximum of 10 per cent. of the GrossAsset Value of the Company in units or shares in collectiveinvestment schemes or in other listed closed-end investment funds.Uninvested Funds. Cash pending investment, reinvestment ordistribution is placed in bank deposits, bonds or USgovernment-issued treasury securities, or in capital-guaranteedschemes offered by major global financial institutions, in order toprotect the capital value of the Company's cash assets. In order tohedge against interest rate risks or currency risk, the Company may,where appropriate, also enter into forward interest rate agreements,forward currency agreements, interest rate and bond futures contractsand interest rate swaps and purchase and write (sell) put or calloptions on interest rates and put or call options on futures oninterest rates.Distribution Policy. Subject to the availability of cash andreserves, the Company will seek, where circumstances allow, toprovide a regular level of income in the form of a dividend up to anannual dividend yield of twelve per cent.4. Life of CompanyThe Company does not have a fixed life but the Board considers itdesirable that shareholders should have the opportunity to review thefuture of the Company at appropriate intervals. Accordingly, theBoard intends to convene an extraordinary general meeting of theCompany in 2015 where a special resolution will be proposed that theCompany continue as presently constituted. If the resolution ispassed, the Board intends that a similar resolution will be proposedat an extraordinary general meeting to be convened each fifthsubsequent year thereafter. If any such resolution is not passed, thedirectors of the Company will be required to formulate proposals tobe put to shareholders to reorganise, unitise or reconstruct theCompany or for the Company to be wound up.For further information please contact:+-------------------------------------------------------------------+| MANAGER: | LEGAL COUNSEL: || Chris Gradel, Managing Partner | Jon Lewis, General Counsel || Pacific Alliance Group | Pacific Alliance Group || 16/F, St. John's Building | 16/F, St. John's Building || 33 Garden Road | 33 Garden Road || Central, Hong Kong | Central, Hong Kong || Tel: (852) 2918 0088 | Tel: (852) 2918 0088 || Fax: (852) 2918 0881 | Fax: (852) 2918 0881 || cgradel(at)pacific-alliance.com | jlewis(at)pacific-alliance.com || | ||--------------------------------+----------------------------------|| BROKER: | NOMINATED ADVISER: || Hiroshi Funaki | Philip Secrett || LCF Edmond de Rothschild | Grant Thornton Corporate Finance || Securities | Tel: (44) 20 7383 5100 || Tel: (44) 20 7845 5960 | Philip.J.Secrett(at)gtuk.com || Fax: (44) 20 7845 5961 | || funds(at)lcfr.co.uk | || | ||--------------------------------+----------------------------------|| MEDIA RELATIONS: | MEDIA RELATIONS: || Sophie Hoggarth | Andrew Walton/David Cranmer || Pacific Alliance Group | Financial Dynamics, London || Tel: (86) 21 6288 3788 | Tel: (44) 20 7269 7217 || shoggarth(at)pacific-alliance.com | || | Alastair Hetherington/Christine || | Wood || | Financial Dynamics, Asia || | Tel: (852) 3716 9800 || | |+-------------------------------------------------------------------+Notes to editors:Pacific Alliance China Land Limited ('PACL') (AIM: PACL) is aclosed-end investment company with net assets of US$172 million at 31October 2009. PACL was admitted to trading on the AIM Market of theLondon Stock Exchange in November 2007. PACL is focused on investingin a portfolio of existing properties, new developments, distressedprojects and real estate companies in Greater China.For more information about PACL, please visit: www.pacl-fund.comPacific Alliance China Land is a member of Pacific Alliance Group,the Asian alternative investment fund management group. For moreinformation about Pacific Alliance Group, please visit:www.pacific-alliance.com---END OF MESSAGE---This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 30.11.2009 - 12:41 Uhr
Sprache: Deutsch
News-ID 9014
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