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Singapore’s CapitaLand has purchased a 32ha prime mixed-use site in Chongqing, China for 2.2 billion yuan (approx. S$459 million) in cash, according to an SGX filing on Wednesday (27 June).
It was bought by CapitaLand’s fully-owned unit Chongqing Kai Tai Industry Development by acquiring all shares in Chongqing Zhonghua Real Estate, with the cash consideration taking into account the site’s agreed value of 5.7 billion yuan (about S$1.19 billion).
The huge land parcel consists of two greenfield sites that are expected to be fully developed by 2022, containing a 1,900-unit residential project and a mall with a total gross floor area (GFA) of around 3.61 million sq ft excluding the parking lots.
It also comprises six brownfield sites housing 223 residential units, as well as 1.076 million sq ft of office and retail space that are already existing or soon-to-be completed.
The two greenfield sites and one of the brownfield plots are next to a train station, while the others are also nearby. All land parcels are situated in Xinpaifang, a mature residential and commercial zone in Liangjiang New Area, which is part of Chongqing’s Free Trade Zone and the first national-level development area in China.
“Given its significant scale, strategic location and excellent connectivity, the land parcel in Chongqing’s Xinpaifang is a prized acquisition that will boost CapitaLand’s land bank in a key gateway city in the South Western region of China,” said CapitaLand Group President & Group CEO Lim Ming Yan.
Aside from their proximity to Guanyinqiao Central Business District (CBD), the land parcels are part of a well-established residential area with a high-income population of around 600,000 people within a 3km radius. They are also close to Jiefangbei CBD, which is next to Raffles City Chongqing.
“This latest acquisition rides on the strong sales momentum for the residential component of Raffles City Chongqing – CapitaLand’s largest and most complex integrated development opening in phases from next year – which has sold 90 percent of the 500 apartments launched to date,” he noted.
The 9.2ha Raffles City Chongqing will feature a 2.48 million sq ft mall, 1.72 million sq ft of Grade A office space and a total of 1,400 apartments, along with a serviced residence and high-end hotel.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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