Singapore-listed Yanlord Land Group has continued its love affair with China’s Yangtze River Delta by acquiring a mixed-use site in Nanjing for RMB 7.84 billion ($1.13 billion) to build an integrated development.
The purchase of the site in the capital of eastern China’s Jiangsu province was conducted through its wholly-owned subsidiary, Yanlord Land Pte Ltd, via a public land auction. The 541,000 square metre site was priced at about RMB 14,486 per square metre of built area, according to a statement by the company to the Singapore stock exchange last week.
The parcel will be used to develop high-quality apartments, recreational facilities, offices and commercial units, the company said.
Yanlord Loves the YRD
The deal comes on the heels of the mainland developer’s November announcement of achieving a 100 percent sell-out of the fourth phase of its 214-apartment-unit Yanlord Yangtze Riverbay Town in Nanjiing on the first day of sales.
According to a recent report by real estate consultancy Knight Frank, Nanjing was one of China’s hottest housing markets in 2016, with average home prices rising nearly 43 percent from September 2015 through the end of the third quarter of last year. City authorities have since introduced strict curbs on new homes sales following growing concerns over a property bubble.
The Yangtze river delta appears to be comfortable territory for the Shanghai-based company, after it acquired two separate sites in Suzhou city for RMB 3.69 billion, complementing its partnership in July with a subsidiary of China Ping An Insurance to develop a 295,000 square metre land parcel in the same city.
Project Includes Equal Mix of Residential and Commercial Space
The latest site in Nanjing is situated within the Sino-Singapore Nanjing Eco Hi-Tech Island, an economic collaboration programme developed under the Singapore Jiangsu Cooperation Council. The development project lies along the the Yangtze River and is close to the Youth Olympic commercial district and Yanlord’s existing Oasis New Island Gardens development.
The project in the Eco Hi-Tech Island is Yanlord’s eighth in the city, and will include a 268,000 square metres of residential space along with 273,000 square metres of commercial, hotel, office and tourism space by gross floor area.
“With its excellent location and connectivity, this site will benefit from the maturing suite of amenities and provides a unique opportunity for Yanlord to augment our existing initiatives within the Nanjing market to further expand our prime development landbank,” said Zhong Sheng Jian, Yanlord’s chairman and chief executive officer.
Yanlord now has a presence in 11 mainland cities. In Jiangsu province the developer has projects in Nanjing, Suzhou, and Nantong, as well as developments in Shanghai, Chengdu, Tianjin, Tangshan, Zhuhai, Shenzhen, Zhongshan and Sanya.