(Yicai Global) April 10 -- Chinese real estate developer Greenland Holdings has set up its Greenland Infrastructure Group unit as the first step in its plan to spin off its infrastructure business for a separate listing.
Greenland Infrastructure Group, which has registered capital of CNY20 billion (USD2.8 billion), plans to rake in CNY1 trillion (USD142.2 billion) in revenue in five to six years and become one of the world's top 500 companies, according to Shanghai-based Greenland Holdings’ press release today.
Real estate and infrastructure have become the two main pillars of Greenland Holdings as the firm has transformed and developed in recent years. Greenland Holdings’ real estate business posted CNY194.7 billion in revenue last year, an increase of over one-fifth over the year before, according to its annual report for last year. Its infrastructure business’ revenue jumped 47 percent to CNY188.6 billion, becoming a new growth point for the company.
Greenland Holdings will assess the possibility of infrastructure and consumption businesses’ separate listing in the future, but no specific timetable has yet been set for this, Chairman Zhang Yuliang announced at the firm’s performance meeting at the start of the year.
Greenland Holdings also announced its formation of the GIG Technology Research Institute and GIG Industry Fund today. The first will serve as a platform for infrastructure technology research and industry development for Greenland Infrastructure Group’s technological innovation and industrial transformation and upgrading, as well as national strategy and social development.
Greenland Infrastructure Group led the GIG Industry Fund and Greenland Financial Holdings Group is responsible for raising funds and managing the entire process. In its first financing round the fund jointly initiated with CCB Trust attracted CNY5 billion.
Editor: Ben Armour