Top-ten mainland developer China Overseas Land and Investment (COLI) splashed out RMB 11 billion ($1.76 billion) on four parcels in mainland China last month, the developer said in a statement filed to the Hong Kong stock exchange.
The four sites in the cities of Beijing, southern China’s Guangzhou and Foshan, and eastern China’s Hangzhou have a combined gross floor area of 1.2 million square metres (12.9 million square feet).
Development Giant Boosts Presence in Top Cities
COLI scooped up the plot in Beijing for RMB 5.45 billion ($847 million), accounting for half of the company’s spending on land acquisitions in January. The suburban site in Changping district is located inside the capital’s sixth ring road, and is earmarked for a mixed-use residential, commercial and educational development with a total GFA of nearly 300,000 square metres.
The developer also won a tender in Guangzhou, paying RMB 1.8 billion ($288 million) for a 78,951 square metre residential parcel in the up-and-coming district of Nansha in the southeast of the city. As part of the 233,512 square metre development, COLI is required to build “housing, commodity housing, resettlement housing or affordable housing, which is to be transferred to the local city government free of charge or to be repurchased by the local city government at predetermined price,” according to the statement.
In addition to these deals in first-tier cities, the developer paid RMB 2.2 billion for a plot in Hangzhou, the capital of Zhejiang province, where it will build a project spanning 89,276 square metres in the city’s Binjiang district. Further south, COLI also picked up a parcel for a 385,747 square metre project in Foshan, Guangdong province, for RMB1.8 billion. The site is located in the city’s affluent Shunde district, which borders Guangzhou and reports directly to the Guangdong provincial government.
COLI Builds Mainland Project Pipeline
COLI ranked seventh among mainland developers with contracted sales of over RMB 202 billion in 2017. The Hong Kong-listed firm achieved HK$25.8 billion ($3.3 billion) in contracted sales in the first month of 2018, up 30 percent year-on-year as it sold 1,569,500 square metres of flats.
COLI’s high-profile rivals Evergrande and China Vanke reported RMB 64.36 billion ($10.3 million) and RMB 67.98 billion ($10.8 billion) in January sales, respectively. China’s biggest developer by sales last year, Country Garden, has yet to announce its January figure, though analysts expect it could exceed RMB 60 billion.