The firm, part of the Keppel Group, is raising $169 million to spend on more land in China, as well as to upgrade a golf course there.

Evergro is raising the funds by offering existing shareholders the right to buy three new shares for every two held, at a price yet to be announced.

It intends to offer 761.8 million new shares in the exercise, which requires shareholder approval.

Evergro believes there is potential for further growth in areas of China such as Tianjin and Jiangsu provinces.

At a media conference yesterday, Evergro chief executive Goh Toh Sim said there was still 'genuine' demand for real estate in China, particularly in the middle to high-end range, despite a stricter lending regime.

In recent times, Beijing has taken steps, such as credit tightening, to cool a frenzied residential market.

'For buyers, as long as they satisfy the regulations, it is very easy to get housing loans. We don't see a downtrend in China's real estate sector,' Mr Goh said.

'As developers, our most important asset is land, and we want to build up our future land bank, so we have to plan ahead.'

This need to seize opportunities is part of the rationale behind the rights issue.

Evergro is aiming to raise net proceeds of $169 million, partly for improvement of the golf course in Tianjin, held by its subsidiary Tianjin Pearl Beach International Country Club. But most of the proceeds are being earmarked for land acquisition.

Mr Goh said this could be in the Jiangsu province area. This could increase the company's land bank, which currently stands at 4 million sq m, by about 10 per cent, he added.

'We're familiar with Jiangsu and we have good relationships there,' said Mr Goh of this hot spot for economic development, which is now arguably one of China's most prosperous provinces.

The company yesterday also proposed, subject to approval by its shareholders, a capital reduction exercise that would be applied to write off its accumulated $36.5 million in losses.

The accumulated losses arose mainly because of impairment in the value of investments in subsidiaries and associated companies, as well as operating expenses and finance costs.