Sunac Chairman Sun Hongbin still believes
Real estate developer Sunac China Holdings Ltd. (1918), has been among the most aggressive acquirers of new land this year, and the firm’s confidence appears to be well-backed as it recently announced a 61 percent annual increase in sales.
According to a report in Bloomberg today,
Sales at the luxury-home builder will be 65 billion yuan ($11 billion) this year, Chairman Sun Hongbin told reporters in Shanghai yesterday. The Tianjin-based company sold 50.8 billion yuan of properties last year, it said in a statement on Jan. 6. That was a 61 percent jump from 2012.
The Bain Capital-backed, Tianjin-based firm made waves earlier this year for acquiring a 28,100 square metre site in Beijing for RMB 2.1 billion (US$347 million). As part of that deal Sunac also made a commitment to build a 278,000 square meter hospital at another site as part of a land acquisition deal which will cost the company RMB 4.3 billion.
With a planned floor area of 59,152 sqm for the project the cost per square metre of built space works out to RMB 73,000 — still the most expensive in China to date.
For 2014, the company expects home sales to rise at least 11 percent this year as it counts on support from wealthy buyers for its upscale developments.
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