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| Thursday, 11 February 2010, 18:34 HKT/SGT | |
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Source: SPG Land | |
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HONG KONG, Feb 11, 2010 - (ACN Newswire) - SPG Land (Holdings) Limited ("SPG Land" or the "Group"; HKEx: 337) is pleased to announce that the Group, through listing-for-sale, has acquired the land-use rights of two parcels of land located at Tai Hu Xin Cheng ('Taihu New Town') and Xishan District ('Xishan Land') in Wuxi City of Jiangsu Province at a total consideration of approximately RMB 3.53 billion and RMB 1.42 billion respectively on 8 February 2010. The land parcels will be used for the purpose of mixed-use development comprising residential and commercial components. This successful acquisition marks the Group's first land replenishment in the Year 2010. The land bank of the Group in Yangtze River Delta has increased by approximately 1,460,000 square meters and it currently holds over 5,000,000 square meters of land bank. This fully demonstrates the Group's flexibility to grasp the development pace of real estate market.
Taihu New Town sits on a 272,375 square meters (total gross floor area - approximately 778,383 square meters) site and will produce an estimated 604,880 square meters for residential-use and an estimated 173,503 square meters for commercial-use. The average land cost is estimated to be RMB 4,535 per square meters. SPG Land (holding 60%) and Wuxi Taihu Newcity Construction Investment & Management Co., Ltd. (holding 40%) have jointly acquired this parcel of land situated along Gaolang Road and Gonghu Avenue and will jointly develop it ("JV Project Company"). The JV project Company will be in alliance with world-class architecture and design teams, aiming to transform the premium site into a new landmark that will be situated at the core of Taihu New Town Central Business District (CBD), echoing the pillar project of SPG - Xi Shui Dong - known to be another prominent project for mixed-use development which is located in the city center of Wuxi. At the end of January 2010, the average selling price of Xi Shui Dong has reached RMB 17,000 square meters.
Taihu New Town, with an estimated site area of 147.22 square kilometers, faces the Binhu District in the South, origins Liang Tong River from the North and ends Tai Hu in the South, adjoining to the Meiliang Lake District in the West and the Beijing-Hangzhou Canal in the East. According to the master plan of Wuxi city, Taihu New Town is prioritized under the urban development strategy to "relocate the city to the South and the industries to the North", targeting to become one of the most prosperous and potential districts in Wuxi, which is of equivalence to Zhujiang New Town in Guangzhou, Binghai New District in Tianjin, Qianjiang New Town in Hangzhou and Pudong New District in Shanghai. This newly acquired site has excellent future prospect as it is adjoining to the Metro Stations which connects to Line 1 and Line 4, hence enjoying the transportation convenience. Alongside with the development of Taihu New Town, the launch of this land parcel will boost the development of commercial-use properties and commercial facilities to the next level.
The Xishan Land, acquired by the Group on the same day, is situated in the South of Taihu Avenue, on both sides of Dongting Road, in close proximity to the Management Committee of Xishan Economic Development Zone and 3 km away from Chang Jiang Bei Road in the New District and Auchan Hypermarket. This land parcel will also be used for mixed-use development and has a site area of approximately 263,000 square meters (total gross floor area - approximately 682,000 square meters) and the average land cost is approximately RMB2,083 per square meters, based on GFA calculation. The land parcel is located along the ecology-friendly Taihu Avenue which provides panoramic scenery of the nature. SPG Land plans to develop the site into a large-scale residential community that is of international standards, closely adhering to the Group's "2+X" product strategy.
Xishan District, situated in the North-east direction of Wuxi City, is the nearest district to the city center. This district is covered by comprehensive transportation network and to facilitate in the development of Xishan District, one of the most important factors taken into account is convenient transportation. Alongside with the construction of the YRD High Speed Rail and the development of the East Wuxi New Town, the districts close to the YRD High Speed Rail will benefit greatly as the need for YRD High Speed Rail has become the biggest pushing factor for the future development of Xishan, which has gradually made Xishan the preferred choice for home buyers from urban area.
Wuxi City in the Jiangsu Province is situated in the central region of YRD which is a prime geographical location and is the birthplace of China's modern trading grounds for the ethnic nationalities. The City has the most vibrant economy and is renowned to be the "Pearl of Lake Tai". Wuxi, with beautiful sceneries and profound history, is one of the cities with top tourist attractions and pleasant living environment in China. In 2008, the total GDP of Wuxi ranked 15th among the Chinese cities, while their per capita GDP exceeded US$10,000 in 2008, ranking them 5th among the top 100 cities in China.
Discussing on the development for the two parcels of newly acquired land, Mr. David Wang, Chairman of the Group, expressed in full confidence: "Through the acquisition of these two parcels of land in Wuxi for the purpose of mixed-used development, this has clearly demonstrated SPG Land's consistent development strategy that penetrates into YRD and our aim to discover any land of good potential in YRD. In the recent years, SPG Land has meticulously identified any land that has growth opportunities in YRD, and towards this city which is known as the "Little Shanghai", we are filled with confidence in its future prospect. On this note, our first project in Wuxi is definitely worth mentioning. Xi Shui Dong, successfully launched in September 2009, has set a new benchmark for sales targets in terms of price and quantity, highly recognized in the Wuxi real estate market. This increase in land bank by acquiring additional land in Wuxi indicates our commitment to the quality and innovation of our products, and our devotion to the development of Wuxi. Hereon, we look forward to create more value for our shareholders and customers."
Contact:
SPG Land (Holdings) Limited
Ms. Bonnie Bao
Senior Manager,
Investor Relations / Group CEO Office
Tel: +86-21-6135-2333
Email: bonniebao@spgland.com
Wonderful Sky Financial Group Limited
Tsz Lung Chow / Jocelyn Yiu / Jade Chui / Cindy Cheuk
Tel : +852 2851 1038
Email: tlchow@wsfg.hk / jocelynyiu@wsfg.hk / jadechui@wsfg.hk / cindycheuk@wsfg.hk
Topic: Construction of Facility
Source: SPG Land
Sectors: Real Estate & REIT
https://www.acnnewswire.com
From the Asia Corporate News Network
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