working business

SOHO China

20/03/2018 08:07

HONG KONG, March 20 (Reuters) - Property developer Soho
China Ltd  0410.HK  said on Tuesday it plans to spin off its 3Q
co-working business and double the number of co-working seats to
50,000 this year to take advantage of rapid growth in that
market.
    Developers and financial investors are capitalising on
fast-rising demand for leasing of "co-working" spaces in China,
as Beijing encourages start-ups and small businesses in a bid to
offset slowing growth at traditional industries.  
    "Young people are very interested in our 3Q ... We will
definitely have 50,000 seats by the end of this year, or exceed
that number," Chairman Pan Shiyi said.  
    He, however, said that Soho China, one of the country's
biggest players in the co-work office segment and an industry
pioneer, had yet to decide on the timing of a spin-off and
listing venue. 
    SOHO 3Q owns 26 co-working centres, with around 26,000 seats
in the Chinese cities of Beijing, Shanghai, Hangzhou, Shenzhen
and Nanjing.
    Earlier in the day, Soho reported a 420 percent jump in
annual net profit to 4.7 billion yuan ($743 million) due to
higher valuation gains on investment properties. 
    Valuation gains stood at 7.1 billion yuan, compared with 1.3
billion yuan in 2016. Chief Financial Officer Sharon Tong said
its core profit also posted growth, discounting the impact of
the valuation gains, although she didn't disclose any figures. 
    Shares in Soho China plunged nearly 10 percent to a
one-month low after the company board did not recommend final
dividend for the year ended December. 
    Pan said he expected the company to post large revaluation
gains this year, although it has no plans to sell any more
assets after two sales in Shanghai last year. 
    Asked if Soho China was interested in acquiring any assets
of embattled conglomerate HNA Group, Pan said the company would
consider "anything cheap".
    The company said it expects rental income to rise around 10
percent in 2018, compared with an 11 percent growth in 2017.    
($1 = 6.3252 Chinese yuan)

 (Reporting by Clare Jim; Editing by Anne Marie Roantree and
Subhranshu Sahu)
 ((clare.jim@thomsonreuters.com; +852 2912 6653; Reuters
Messaging: clare.jim.thomsonreuters.com@reuters.net))