GuocoLand unit wins tender for 4 sites in Chongqing

A unit of Singapore-listed developer GuocoLand has won the tender for four sites in the Chinese city of Chongqing.

GLL Chengdu is paying 3.64 billion yuan (S$753 million) for the plots intended for mixed-use development, comprising retail, business and residential components.

The sites have a total land area of 48,961 sq m and an above ground gross floor area of 513,600 sq m.

They are within the same area in the Yuzhong district of the city in south-western China, with a view of the Yangtze River and with good transport connections.

GuocoLand has been active in China since 1994, and has a sizeable portfolio of properties in Beijing, Shanghai, Nanjing and Tianjin.

The sites' acquisition and development will be financed by internal resources.

GuocoLand said Hong Leong Holdings (China) - a fully owned subsidiary of Hong Leong Holdings - will participate in the acquisition and development by subscribing to new shares in GLL Chengdu.

Hong Leong Holdings (China) will outlay about 946.5 million yuan to secure 25 per cent of the enlarged share capital in GLL Chengdu, with GuocoLand holding the rest.

GuocoLand said in a statement on Tuesday thst the transaction is not expected to have any material impact on its net tangible assets per share or earnings per share for the financial year ending June 30, 2017.

The firm's portfolio comprises residential, hospitality, commercial, retail and integrated developments across the region, with total assets amounting to $7.9 billion as at June 30, according to its latest annual report.

A version of this article appeared in the print edition of The Straits Times on December 01, 2016, with the headline 'GuocoLand unit wins tender for 4 sites in Chongqing'. Print Edition | Subscribe