Greenland HK seeks banking, e-commerce partners for new finance arm

HONG KONG, March 27 (Reuters) - Greenland Hong Kong Holdings Ltd on Monday said it is looking for banking and e-commerce partners to grow its nascent finance division, as the property developer works to diversify its business. The subsidiary of China's second-largest developer, the state-backed Greenland Group, is moving into financing to help offset narrowing profit margins in a property development industry beset with expensive land and falling housing prices. Greenland HK has set up an online platform that connects property developers and investors with financing and investment opportunities. The first deal on the platform, worth $200 million, is set to close "soon", the company said. "The property trust market was valued at 1.3 trillion yuan ($209.20 billion) last year," Chairman and Chief Executive Officer Chen Jun said at an earnings briefing. "There is a lot of room for refinancing in the future." The company said that it is in talks with potential partners including banks and e-commerce firms such as Alibaba Group Holding Ltd regarding its real estate finance platform. It did not elaborate on the nature of any such partnerships. A spokeswoman for Alibaba's online finance and payment affiliate Ant Financial declined to comment on talks with Greenland HK, saying only that Ant is always looking for partnerships. Greenland HK also said it is planning a "special opportunity fund" to absorb any assets from the financing platform that users are forced to sell for reasons including bankruptcy. The developer already has a real estate fund management company, Blackwood Capital, set up last year and which has raised $1 billion offshore. Greenland HK posted a 209 percent rise in net profit in 2014 at 108 million yuan, boosted by increases in the valuation of its properties. Revenue fell 48 percent; gross profit margin rose 9 basis points to 27.4 percent. It shares closed down 0.1 percent in a flat Hong Kong market . ($1 = 6.2142 Chinese yuan renminbi) (Reporting by Clare Jim; additional reporting by Paul Carsten; Editing by Christopher Cushing)