Property developer CapitaLand said on Friday it has acquired a 60 per cent interest in two adjacent residential land plots in the New Southern Area of Chengdu, Sichuan in China.
It is buying the stake by subscribing to $155 million of shares in two Chinese companies, the Singapore-listed group said.
It added that the acquisition is in line with CapitaLand's strategy to increase its footprint in China.
The group plans to build some 4,600 apartment units catering to first-time homebuyers and upgraders on the sites, which have a total floor area of about 5.17 million sq ft. It expects to begin construction in the second quarter of this year and launch the first phase of homes for sale by the end of the year.
The sites are located within the central core of Chengdu's Tian Fu New Area, inside the Da Yuan cluster. The area is a mature residential district with mid- to high-end developments.
"Chengdu is a leading city in China and displays tremendous growth potential arising from rapid urbanisation and China's 'Go West' economic strategy," said Mr Jason Leow, chief executive of CapitaLand China.
"The city has become a magnet for domestic and foreign investments and an excellent platform to unlock the economic potential for China's western regions."