Singapore-based property developer CapitaLand has won the bidding for a prime mixed-use site in Guangzhou for RMB882 million ($126.63 million), marking its foray into the Chinese city’s booming office market.
According to the company’s statement on Monday, the site is located within Guangzhou Science City, promoted as an innovation and technology hub.
The project will be developed on the 4.7 hectare (11.6 acre) land in Huangpu, one of the wealthiest districts in China, with the gross floor area of 142,107 sq m. Of total, 70 per cent will be office, retail and serviced residence and the rest will be developed into low-density strata offices.
It said the development is targeted for completion by 2022 to serve the rising demand for office spaces from tech companies. CapitaLand holds 75-per cent stake in the development while the rest is held by an unrelated third party.
“The timely acquisition of our newest mixed-use site in Guangzhou will strengthen and diversify CapitaLand’s portfolio to capture the new wave of growth in the Guangdong-Hong Kong-Macao Greater Bay Area,” Lucas Loh, President of China & Investment Management at CapitaLand Group, said.
He added CapitaLand has divested close to S$2 billion worth of assets to date and reinvested into new higher-yielding assets valued at S$1.05 billion ($760.24 million) in China this year.
Including the latest acquisition, CapitaLand currently owns and manages 45 developments across eight cities in Guangdong-Hong Kong-Macao Greater Bay Area. The portfolio comprises four integrated developments including Raffles City Shenzhen, 10 residential developments, four shopping malls and 27 serviced residences in the Greater Bay Area.