CapitaLand clinches two prime residential sites in Guangzhou, China
CapitaLand is confident that the newly awarded residential sites in Guangzhou's Zengcheng District will achieve synergies with the ongoing Datansha Urban Redevelopment project
CapitaLand is confident that the newly awarded residential sites in Guangzhou’s Zengcheng District will achieve synergies with the ongoing Datansha Urban Redevelopment project (pictured) in the city’s Liwan District, which is being developed into residential and commercial projects over phases. (Credit: CapitaLand)
CapitaLand has claimed two of Guangzhou’s prime residential sites for RMB2.05 billion (about $409.3 million) – marking its second acquisition in China in less than three months. With a combined area of about 150,000 sq m, the sites could see the development of 1,300 housing units by 2021, catering to first-time home buyers and upgraders.
CapitaLand China CEO Lucas Loh says that Guangzhou has been identified by CapitalLand as a core city cluster for growth in China, where the company has CapitaLand has developed many well-received residential projects since entering the city in 2006.
The said sites are located within the heart of Zengcheng District, which is the engine of Guangzhou’s industrial growth and the site of its future second international airport. It is also home to well-known firms such as Honda and FOXCONN, as well as the upcoming Guangzhou Education City.
“CapitaLand remains optimistic about the prospects of China’s residential market, where strong housing sales have continually contributed to the group’s earnings.”
In an SGX filing, CapitaLand noted that the acquisition follows its purchase in June of a mixed-use site in Chongqing, which is also expected to yield over 2,100 housing units.
“These 3,400 units in Guangzhou and Chongqing are a timely addition to our China residential pipeline, as we ready ourselves to release another 4,000 units for sale by the end of 2018,” said CapitaLand Group president and group CEO Lim Ming Yan.
The Chinese government plans to grow the district’s population from 1.15 million to 2.1 million by 2020 – making it Guangzhou’s fastest-growing district.
“We are delighted to be awarded the new sites in Guangzhou, which will create synergies with our ongoing Datansha Urban Redevelopment project in Guangzhou’s Liwan District that is being developed into residential and commercial projects in phases.”