Property entrepreneur Kevin McCabe is gearing up for a fresh investment drive into Chinese real estate.
The Scarborough Group boss and Sheffield United FC chairman plans to launch a fund- ?raising programme through his company China Growth Opportunities early next year.
To pave the way for the cash-call McCabe is in the process of changing the name of the business to Scarborough Oriental Ventures.
The proposed war chest will then be used to buy into Chinese-based retail and real estate businesses as sole or lead investor.
It is understood a number of options for fundraising will be considered and the eventual quantum will depend on investor appetite.
One broker said because of the small size of the company, which has a market capitalisation of around £1m, a share placing would “be an initial public offering in all but name”.Scarborough Group bought a 28.6% stake in China Growth Opportunities in June 2012, with McCabe becoming an executive director.
His controlling stake of 20m shares cost just £200,000 as the company had only one asset and was returning cash to shareholders. In March 2013 the company’s net asset value had fallen to 0.29p per share.
On Wednesday CGO’s share price spiked to more than four times its opening price, prompting the company to put out a note stating that it was “not aware of any reason for such movement”.
Scarborough’s Chinese interests
McCabe has been investing in China for more than 10 years. His first visit was prompted by a shirt sponsorship deal with soft drinks company Desun for Sheffield United, which he co-owns.
Since then, Scarborough has opened an office in southern China and taken a stake in the Hong Kong-listed Top Spring International. It also has indirect interests in the Rainbow Department Store Company, and a jv with Wyndham Advisers, ScarWyn Capital, to provide ?cross-border real estate fund management.
Bridget.O’Connell@estatesgazette.com
