Shanghai Industrial Development Co Ltd<600748>, which is principally engaged in property development, yesterday announced that it plans to issue up to 300 million shares for RMB 14.43 per share or RMB 4.2 billion at most, sources reported.

The proceeds from the issuance will be used to fund the development of four real estate projects that will cost nearly RMB 10 billion in total.

The Shanghai-listed firm intends to invest RMB 1.85 billion of the proceeds in an RMB 5.04-billion project in Qingdao, Shandong Province. The project, which covers a land area of 227,675 square meters, will have a gross floor area of 630,000 sq m, 260,000 sq m of which will be sold for an estimated RMB 5.13 billion.

The enterprise will also inject RMB 1.55 billion into a residential property project in Zhujiajiao Town, Shanghai. The project, which will cost RMB 3.64 billion and started construction in July, will generate an estimated RMB 6.22 billion in sales revenue.

The other two projects will both be located in Huzhou, Zhejiang Province. The enterprise will build an RMB 870.83-million hotel, which will consume RMB 600 million of the proceeds. Construction will start in June 2010, and the hotel will cover a land area of 116,458 sq m and have a floor area of 131,212 sq m. The other project in Huzhou, which will cost a total of RMB 345.22 million and will start construction in March 2010, is an apartment project that is expected to generate RMB 598.6 million in sales revenue and RMB 116.4 million in net profit.