Yanlord Land Group and Huafa Industrial Co, a Shanghai A-share listed enterprise, have entered into a joint venture on August 21.
Yanlord holds an effective interest of 51% in the joint venture.
The companies, through the joint venture, have acquired a rare low-density prime residential development site located in Kangqiao, Pudong New District of Shanghai. The site is located about 20 minutes by drive from Pudong Qiantan International Business District and the World Expo. It is also about a 30-minute drive away from Pudong International Airport.
The acquisition was done through a public land auction for a total consideration of RMB4.5 billion ($890.1 million).
The site has a total gross floor area (GFA) of about 91,346 sqm.
“This new land acquisition reiterates our confidence in the sustainable development of high-end residential market in first-tier cities,” says Yanlord’s chairman and CEO Zhong Sheng Jian.
“Capitalising on our core competencies as well as that of our partner – Huafa, we are looking forward to generate a greater value for our stakeholders with the development of this site. The site is a clear site that we could commence construction shortly for pre-sale in next year to sustain the group’s continuous contracted presales growth in the coming years,” he adds.
Shares in Yanlord closed flat at $1.25 on August 21.