Foreign Property News | Posted by Hnin Ei Khin
Shimao Properties, mainland China’s eleventh largest developer by contracted sales, has agreed to pay RMB 850 million ($115 million) for a residential site in Beijing, according to the city’s Land Bureau.
The Hong Kong-listed developer controlled by tycoon Hui Wing Mau won the 57,400 square metre (617,848 square foot) site in southwest Beijing’s Fangshan district after agreeing to tender conditions that require housing developed on the property to be offered for sale on shared ownership basis as mainland authories continue to push for housing affordability in China’s major cities.
Shimao’s winning bid edged out a competing offer from local government firm Fangshan New Town Investment Ltd and came at a premium of 10.4 percent over the auction reserve price after 15 rounds of bidding between the two companies.
With up to 35,800 square metres of the site eligible for construction, the development, which has a plot ratio of 2.15 can yield up to 68,400 square metres of housing, making Shimao’s purchase price equivalent to RMB 12,392 per square metre of saleable homes.
As a condition of the tender, the Shanghai-based developer is also required to build a nine-room kindergarten, which is to be handed over to the local education authority free of charge upon completion, and which will bring the total built area of the project to 71,600 square metres.
The development, which is capped at a height of 30 metres, must also retain 30 percent of the site area for greenery.
Units in the project are to be sold under China’s shared ownership housing model, where qualified homebuyers choose to pay between 50 percent and 95 percent of the property value, with the government retaining the remaining equity.
With a land bank totalling 64 million square metres in mainland China, Shimao added 14 million square metres of that pipeline within the first six months of this year.
Ref: Property Report
