CapitaLand Buys Prime Mixed Site For $867m in China
China – Recent reports suggest that CapitaLand, a property developer based in Singapore, has purchased a prime mixed site spread over 32 hectare for a whopping $867 million. Sources reveal that this prime mix site is located in Chongqing, China. The amount spent on the prime mix site is quite huge but it seems like it is going to pay off for CapitaLand, who made the purchase in the first place.
CapitaLand, while commenting on the new acquisition, said that this will add more than 2,100 units to its current residential pipeline in China and it will also double the retail network that is there in Chongqing. This is already considered as a gateway to the fast-growing Chinese region so the new pathway is going to facilitate new things for the company right away.
As a part of the acquisition, CapitaLand will get two Greenfield sites, which are expected to have a yield of 1,900 residential units along with a shopping mall with a total gross floor area, minus the car park, of 335,000 square meters. These are the stats of when the place is fully developed in four years from now, by 2022.
The land also has an inventory of up to 223 residential units and contains retail and office space of 100,000 square meters. CapitaLand made it clear that it will take over the property once it has acquired the shares in the company that currently owns the site.
The site itself is located in Xinpaifang, which is a well-known residential and commercial zone located in Liangjiang New Area. It is the first development area on a national level in Inland China and it is located in the Free Trade Zone of Chongqing.
The place is also very strategically located, as it is just a 20-minute drive from Jiangbei International Airport and not too far away from Guanyinqiao Central Business District (CBD).
CapitaLand already has a lot on its hands as it also manages 7 other serviced residences in the Chongqing area. The company is managing these properties with The Ascott Limited, its own fully owned residential service apartment arm.
CapitaLand has also been making sales here and there as, during the start of the year, it sold its interest in about 20 retail shopping malls in China. The property was sold to the SCP Group of China Vanke commercial property unit and the sale was made for a whopping $1.3 billion.
CEO Lucas Loh, while commenting on CapitaLand’s latest acquisition, said, “As compared to the other Chinese cities, Chongqing’s current property market has been far more stable, thanks to the efforts of the municipal government in order to moderate the demand and supply”. This, he believes, has helped with the purchase and acquisitions greatly.
Chongqing’s annual GDP was reportedly growing at 9.3% in 2017, which is far more than the national average of just 6.9%. The city is expected to have inflows of fortunes with many economic initiatives going in its favor such as the Yangtze River Economic Belt and others.
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