HK's EnerChina says to buy hotel, property in China for $328 million

HONG KONG (Reuters) - Clean energy and public utility developer EnerChina Holdings Ltd (0622.HK) said it would buy hotel assets in Shanghai and an interest in land in Zheijing province for HK$2.55 billion ($328.5 million), entering China's property investment market.

In a filing to the Hong Kong bourse on Monday, EnerChina said it would buy the assets from property developer Wu Laam Anne, in exchange for shares, convertible notes and cash.

Wu could eventually hold 62.5 percent of the enlarged EnerChina group on the conversion of the five-year notes.

The Hong Kong-listed firm said the acquisitions will enable it to enter China's property investment market and position it capture the growth potential from China's financial and business hub.

For statement click: here

Beijing is still talking tough on keeping property prices in check, and 2012 is likely to be a crunch year in the property development industry as a funding crisis for mainland Chinese developers is intensifying.

($1 = 7.7624 Hong Kong dollars)

(Reporting by Donny Kwok; Editing by Richard Pullin)