Greentown’s Song Weiping has a lot to be excited about
Greentown China Holdings Ltd. (3900) and Sunac China Holdings Ltd. (1918), both Hong Kong-listed developers of land in China, confirmed last week that they will acquire a real estate project in Shanghai’s Huangpu district for RMB 5.68 billion.
According to a Hong Kong stock exchange filing on Friday, Sunac Greentown Investment Holdings Ltd., a 50-50 venture between the companies, will also assume 2.32 billion yuan of debt, for the project formerly known as Dynasty-on-the-Bund.
In March, the companies had announced a framework agreement for the purchase at a total consideration of 9.02 billion yuan, according to a statement at the time.
The project, in the city’s Huangpu district, will have a total of 674,564 square meters (7.3 million square feet) of floor area, including apartments, offices, commercial space and parking, the companies said. Of this, 271,061 sqm of floor area is said to be complete, and the balance remains under construction, according to the developers.
The seller of the project is Arch Capital Success Ltd., Sunac and Greentown said in the filing. Greentown is based in Hong Kong and Sunac in Tianjin, China.
According to earlier statements, the 113,842-square-meter plot will accommodate apartments and commercial units, and the joint-venture will be paying 12,574 yuan per square meter for the acquisition.
Greentown was in the news a few years ago when it nearly went bankrupt. However, since the company was acquired by Hong Kong’s Wharf in 2012, it has been expanding aggressively.
In early May Greentown completed a successful RMB 2.5 billion bond sale which was aimed at raising funds to acquire additional projects.
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