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CDL joint venture Sincere fetches higher sales for Chengdu residential project, wins management contract for Kunming transportation hub

The Edge Singapore
The Edge Singapore11/26/2020 01:07 PM GMT+08  • 3 min read
CDL joint venture Sincere fetches higher sales for Chengdu residential project, wins management contract for Kunming transportation hub
The management contract will help generate more recurring income
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Sincere Group, the China-based joint venture of City Developments, has announced stronger sales and higher average prices for a Chengdu residential project.

According to CDL, TianFengHe Mansion’s phase three launch, which started on Nov 10, generated sales of RMB 150 million. Of the 762 total units in the project, 540 units have been launched, of which 430 units, or close to 80% were sold by Nov 25.

Based on the latest confirmed sales, units sold in November were at an average of RMB13,700 psm, or 8.7% higher than RMB12,599 per sqm for units sold in March 2020, in the midst of the Covid-19 pandemic and when buyer sentiment was at its lowest.

This project (picture), sited in Chengdu, Sichuan province, was first launched in Dec 2019 and has an estimated saleable gross floor area of residential units of 360,000 sqm, and total sales value of up to RMB 4.6 billion.

“We are highly encouraged by the sales of our Chengdu project. It underscores the brand recognition of our projects across China,” says Sincere Group.

“Based on official data, home prices across China continue to show month-on-month growth. China is recovering well from the pandemic. Other residential projects of the Sincere Group continue to report healthy growth in sales volume and selling prices,” the company adds.

See more: Is CDL oversold following the family disagreements over Sincere and M&C?

In addition, CDL has also announced that Sincere Group has beat four other competitors to win the bid to operate the retail space in the upcoming Kunming Transportation Hub.

The Sincere Starlight Mall will have over 100,000 sqm of retail space and will be managed by the Sincere group for a 15-year period commencing 2024. The project in the capital of Yunnan Province will be a source of recurring income for the company.

This is the second management contract secured by Sincere in Kunming this year. Such contracts help Sincere generate more recurring income.

When completed in 2024, the Kunming Transportation Hub will serve as a major multi-modal interchange serving 45 million passengers annually.

This transportation hub is part of a RMB6.5 billion mixed development that also includes retail, office, hotel, residential units and car parks. It will have a total GFA of 608,800 sqm.

The hub is building upon current rail and road links to the region to Myanmar, Laos and Thailand and will also be linked to Kunming’s Changshui International Airport and the Kunming High Speed South Train Station.

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