China Vanke, the mainland’s biggest developer by sales, continued its global expansion this week by acquiring a residential site in Hong Kong for HK$860 million (RMB 688 million). The project will be Vanke’s second venture in Hong Kong and will add to a growing international portfolio that already includes developments in the US and Singapore.
According to a story in the South China Morning Post, Vanke bought the 7,077 square foot (657 square metre) site at 12-24 Lun Fat Street in the city’s Wanchai district from Hong Kong developer Soundwill, which announced the transaction on Tuesday.
The plot is currently home to an older eight-storey building but could be redeveloped into a residential building with 56,616 square feet (5260 square metres) of homes. Vanke paid the equivalent of HK$15,190 per square foot for the property, or RMB 130,809 per square metre.
Adding to an International Property Portfolio
A third venture in the Special Administration Region could be on the way soon for Vanke, as the Shenzhen-based firm last month expressed interest in MTR Corp’s phase four of the Lohas Park development in Tseung Kwan O.
Vanke took on its first Hong Kong project in January 2013 when it jointly won a HK$3.43 billion ($442 million) bid for a site in the city with Hong Kong’s New World Development Co.
The mainland real estate giant has since followed the same model of entering new markets with experienced local partners to pursue projects in San Francisco with Tishman Speyer, and in Manhattan with US developers RFR and Hines.
A Busy Week for Vanke
Last week the company belonging to billionaire Wang Shi announced a new US$250 million venture with the Canada Pension Plan Investment Board (CPPIB) to develop new homes in China, and over the weekend said that it is holding discussions with Blackstone Group about a real estate fund devoted to China’s logistics real estate sector.