(June 19): China-based property group Pan Hong Holdings has acquired a piece of land in Zhejiang province for RMB275 million ($54.4 million) to develop a residential project.

Won via a tender organised by the Huzhou Bureau of Natural Resources and Planning, the land is located in Wuxing district, Huzhou city.

Earmarked for residential use, the land has a total site area of 36,122 sqm and a maximum gross floor area of 65,020 sqm.

Among the conditions attached to the acquisition, Pan Hong has to pay a total compensation of RMB400,000 to the local government and would be responsible for the demolition of several buildings and premises standing on the land.

And as part of corporate social responsibility, the group is required to build a wine culture exhibition centre with gross floor area of not less than 2,000 sqm on the land.

The group is also required to retain not less than 35% of the total gross floor area under its own title for at least a minimum period of not less than eight years.

Pan Hong says the consideration and taxes will be funded by the group’s internal resources and bank borrowings. The group has paid a deposit of RMB44.4 million and 50% of the remaining consideration is required to be paid within 30 days from June 4, the date of bid confirmation, with the rest to be paid within six months from that date.

Shares in Pan Hong last traded at 8 cents on Tuesday.