CapitaLand has acquired all the shares in a company that owns a 32ha prime mixed-use site in Chongqing, a move that will boost its residential pipeline in China by more than 2,100 units.
The amount payable is 2.2 billion yuan (S$459 million), which includes the agreed value of the property at 5.7 billion yuan, the group said yesterday.
The land parcel comprises two greenfield sites that will yield 1,900 residential units and a shopping mall with a combined gross floor area - excluding the car park - of 335,000 sq m when fully developed by 2022.
It also includes brownfield sites with an inventory of 223 residential units and 100,000 sq m of office and retail space that are completed or soon to be completed.
CapitaLand president and group chief executive Lim Ming Yan said: "Given its significant scale, strategic location and excellent connectivity, the land parcel in Chongqing's Xinpaifang is a prized acquisition that will boost CapitaLand's land bank in a key gateway city in the south-western region of China.
"This latest acquisition rides on the strong sales momentum for the residential component of Raffles City Chongqing - CapitaLand's largest and most complex integrated development opening in phases from next year - which has sold 90 per cent of the 500 apartments launched to date."
Xinpaifang is a mature residential and commercial zone in Liangjiang New Area, the first national-level development area in inland China and part of Chongqing's free trade zone.
It is a 20-minute drive from Jiangbei International Airport and a short distance from Guanyinqiao Central Business District (CBD), as well as Jiefangbei CBD, which is next to Raffles City Chongqing.
Nestled within a well-established residential enclave with nearby amenities, the site is directly connected to Sports Park metro station, which serves three lines. The area has a high-income population of about 600,000 people within a 3km radius.
CapitaLand China CEO Lucas Loh pointed out that Chongqing is one of China's fastest-growing cities, with strong investment potential.
"Given the favourable market conditions, coupled with the attractive attributes of our new site in Xinpaifang, we are optimistic about the demand for our upcoming residential launches in Chongqing," he said.
"This acquisition is also timely, and we expect to recognise gains from sales of the soon-to-be-completed residential units upon handover, which could be as early as the second half of this year."
CapitaLand's shares closed 2.2 per cent lower at $3.13 yesterday.