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Beijing Centergate cancels $2.6 bln property plan

Thu Aug 28, 2008 9:13pm EDT

SHANGHAI, Aug 29 (Reuters) - Beijing Centergate Technologies (Holding) Co 000931.SZ, developer of the city's Zhongguancun technology district, said on Friday it had cancelled its plan for an 18 billion yuan ($2.6 billion) share placement to obtain real estate assets.

Centergate said tight monetary policy this year had seriously affected China's real estate sector.

"It's unclear how profitable the real estate assets that were to have been injected into Centergate would actually be," the company said in a brief statement.

Centergate said in early May that it would place as many as 1.23 billion new shares at 14.67 yuan each with its controlling shareholder, Beijing Pengtai Investment Co, and related parties.

In return, it would have taken over Beijing Pengrun Real Estate Development Co, obtaining a range of real estate assets including some in the western Chinese city of Chongqing. ($1 = 6.828 Yuan) (Reporting by Rujun Shen; Editing by Ken Wills)



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