Foreign Property News | Posted by Si Thu Aung
China Overseas Land & Investment (COLI) has teamed up with the real estate arm of state-owned steel company Shougang to win a 61,100 square metre (657,674 square foot) residential site in Beijing for RMB 5.1 billion ($730 million), according to a notice by Beijing Municipal Commission of Planning and Natural Resources.
With the purchase last week, the pair of state run giants have won the right to develop and market 148,600 square metres of space at the site near Gucheng station on Beijing’s metro line one without price restrictions, provided that they also build community facilities associated with the project under the terms of the land tender.
The acquisition comes one year after COLI and Shougang had joined hands to acquire a 61,000 square metre neighbouring site, for RMB 4.83 billion.
COLI and its partner are paying the equivalent of RMB 41,943 per square metre of built area for the project between the fifth and sixth ring roads in western Beijing, after buying the five parcel site at the auction reserve price.
The project in Shijingshan district is close to the Yongding River Forest Park, Beijing Garden Expo Park and Shijingshan Sports Centre in an area that has seen multiple site sales this year.
As a condition of the bid, however, the development duo will be required to build a 12-classroom kindergarten, a 300-bed senior living facility, a community health care centre, and a community retail strip which they will turn over to the local government free of charge upon completion.
The community development element of the project wins COLI and its partner an exemption from housing sales price caps that have squeezed many developers between rising land costs and government-imposed limits on home prices.
The conditions of the land auction have required the winning developer to build a 12-class kindergarten, a 300-bed old-age care center, a community health care service center and a business service center, all to be handed over to the local authority free of charge upon completion.
Ref: Property Report
