A major property developer has chosen the Isle of Man to help further business interests in China’s booming economy.
The Isle of Man’s 2006 Companies Act providers for a simplified, user-friendly company formation mechanism – along with the Island’s zero corporate tax regime have played a key role in aiding China Central Properties to float its latest venture on London’s Alternative Investment Market.
After seeking guidance from tax and legal advisers in Hong Kong, Beijing and London, the Chinese operation opted to base its new venture in the Isle of Man. Deutsche Bank AG acted as nominated adviser and broker to CCP.
The incorporation of the Chinese company marks the first floatation of a ‘NMV’ on AIM and is another significant signpost for the Island’s progressive package of financial services. Manx law firm Dickinson Cruikshank provided the specialist legal advice.
CCP was admitted to AIM after raising US$500 million, including US$300 million in equity and US$200 million in five-year convertible bonds. The company’s main focus will be on rescuing partially completed property projects that have run into financial difficulties. The current speed of growth in China means there is an urgent market niche for this type of ‘white knight’ operation. CCP plans to acquire these properties, add value by upgrading them and then lease or sell them on.
AIM is growth area
CCP is the latest in a significant number of AIM floats handled by Dickinson Cruikshank. The firm has advised on 15 in the past year and is in the process of taking instruction on a further 12 proposed company admissions.
Simon Harding, a partner in the firm’s commercial department, cited the Isle of Man’s professional expertise and general ‘can-do’ attitude as another major attraction for this calibre of international business: ‘We are pleased to have been involved in the first 2006 Companies Act company listing on AIM and are sure it will be the first of many – demonstrating the positive impact of the new companies legislation and the importance of understanding and meeting the changing demands of the global marketplace.’
A recent survey by business and financial data analysts Hemscott shows the Isle of Man now plays host to more top 100 non-UK companies listed on AIM than any other jurisdiction.
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