FountainVest leads $100 mln buy in China developer-source


Date: 04 Aug 2009
By: George Chen
From: Reuters

HONG KONG, Aug 5 (Reuters) – A consortium led by private equity firm FountainVest Partners has agreed to buy about $100 million worth of convertible bonds issued by Central China Real Estate (0832.HK) to support the developer’s domestic expansion, said a source familiar with the situation.

Shares of Central China Real Estate were suspended for trading on Wednesday morning on its plan to issue convertible bonds and warrants, the developer said in a statement to the Hong Kong stock exchange, but without giving further details.

Representatives for Central China Real Estate, which focuses on residential properties in Henan, the country’s most populous province, and FountainVest, a $1 billion private equity fund backed by Singapore state investor Temasek Holdings [TEM.UL], could not immediately be reached for comment.

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