Top-ten mainland developer China Overseas Land and Investment (COLI) has purchased a 175,114 square metre mixed-use site in northern Beijing for RMB 5.45 billion ($847 million), according to official announcements following the government auction.
The site in Shahezhen town in Changping district is approved for construction of a total of 299,579 square metres of gross floor area in the suburban area just inside the capital’s sixth ring road, which translates to a cost of just under RMB 18,200 per square metre of built area for COLI.
According to official stipulations for the land sale posted by the government, the site approximately one hour’s drive north of the city’s downtown business district is allocated for residential, commercial and educational uses. The selling price for commercial homes built on the land is capped at RMB 59,610 ($9,267) per square metre.
COLI Adds to Beijing Portfolio
China Overseas Land and Investment already has a history in Shahezhen, having completed the Lagoon Manor residential project there in 2011. Homes in that property are currently selling for an average price per square metre of around RMB 38,374 ($5,965) on the second-hand market, according to Fang.com, an online real estate platform.
COLI, which ranked seventh among mainland developers with contracted sales of over RMB 202 billion in 2017, acquired a residential site in Beijing’s southwest for RMB 1.35 billion ($204 million) in late October.