CWG announces land acquisition in Changshu, full buyout of Chinese property developer
Suzhou Royal Palace, a development by CWG International in Pingjiang New Town, Suzhou, comprises high-rise apartments and a commercial component (Image source: Chiwayland Group).
CWG International announced on Aug 21 that it has successfully bid for the land use rights of a land parcel located at Changshu City, Jiangsu Province in China for RMB454 million ($92.8 million). The land parcel comprises a site area of approximately 40,612 sqm with a plot ratio of 2.1.
Changshu is a Tier-3 city located on the Yangtze River Delta. It borders Wuxi to the West and Suzhou and Shanghai to the South.
According to CWG, the acquisition of the land parcel is in line with its strategy to scale in China, and will add to the group's projects targeting the Tier-3 market which is experiencing high sales turnover.
It added that any development on the land parcel is not expected to complete before 2019.
CWG also announced that its wholly owned subsidiary Suzhou Chiwayland Group Co., Ltd. has acquired the remaining 30% of the equity interest in Xuancheng Xinkaiyuan Real Estate Development Co for RMB38million ($7.76 million). This follows its acquisition of a 70% stake in July.
Following the second acquisition, Xuancheng Xinkaiyuan has become a wholly owned subsidiary of CWG. The total consideration for the 100% equity interest paid by Suzhou Chiwayland amounted to RMB145.7 million.
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