HONG KONG: Hong Kong- and Shanghai-listed Beijing North Star Co Ltd is seeking a one billion yuan to 1.5 billion yuan (RM493.08 million to RM739.63 million) three-year financing for a commercial property project in Changsha, capital of Hunan province, banking sources said.

China Citic Bank is the mandated lead arranger. Three to four banks could be joining the deal, sources said.

The facility offers an all-in of 115%-120% of the PBOC rate, a source said.

Beijing North Star acquired land at Changsha's Xinhe Delta in 2007 for 9.2 billion yuan, at the time a record high price in China. Renamed Beijing North Star Delta, the 1.1m-square-meter area is going to be developed into apartments, office buildings, hotels and shopping malls, according to the company's website.

A source said the company might be seeking financing for other development projects in the delta. But he added that banks tend to be prudent towards lending to the property sector at the moment.

Meanwhile, another 2.5+ billion yuan financing for a Changsha property project is in the works for Poly Real Estate Group Co Ltd. The financing could be split into two separate loans which are now being looked at by five to six banks. Bank of China and China Citic Bank could be among the top-tier arrangers for the two loans.

Shanghai-listed Poly Real Estate Group is a subsidiary of state-owned conglomerate China Poly Group Corp. Its ongoing developments in Changsha include three high-end residential/villa districts and two commercial complexes including office buildings, hotels and shopping malls, according to the company's website. — Reuters

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