Kerry Properties, a Hong Kong-listed property investor and developer, announced that it is acquiring a residential and commercial site in Zhejiang Province’s Hangzhou City, the hometown of Alibaba founder Jack Ma, for Rmb6.8 billion ($983 million)
In a disclosure, the firm said its wholly owned subsidiary, Bright Beyond, has won the bid to acquire the site, which has an aggregate area of 98,053 square meters, at a government auction. The total consideration will be settled in cash.
The first payment of approximately Rmb1.36 billion ($197 million), or 20 per cent of the total consideration, will be paid on or before May 31, 2019. The second payment of about Rmb2.04 billion ($295 million) will be paid on or before June 30 of this year. The balance will be settled on or before January 29, 2020.
The terms for the grant of the land use rights of the land, which is designated for residential and commercial uses, are 70 years for residential use and 40 years for commercial use, Kerry Properties said in a disclosure.
The site is situated at a premier location at the heart of Hangzhou City, in the vicinity of Dongxin Road, which is a major link between the northern and southern parts of the district.
The firm plans to build a large-scale complex with office, commercial, and residential components on the site to address what it foresees as the scarce supply of large-scale developments in Hangzhou in the near term.
“The directors believe that the transaction provides the group with a good investment opportunity in the prime location at Hanghzou and it also provides an opportunity for the group to increase the lank bank for development,” Kerry Properties said.
The acquisition is not a first for Kerry Properties in Hangzhou City. The firm has made early moves in the city through the development of a portfolio of mixed-use, residential, and commercial projects, including Hangzhou Kerry Centre, Castalia Court, and Parkview Residence.
The Hangzhou Kerry Centre, which has a gross floor area of 200,000 square metres, integrates Grade-A offices, premium apartments, and a retail-mall complex with a luxury hotel, and has become a landmark in Hangzhou since its completion in 2016.
“The company aims to create synergies for the project with both its existing portfolio and the benefit of the solid experience gained from its years of development in the city,” Kerry Properties said.
Kerry Properties has been involved in property investment and development activities in Mainland China and Hong Kong since 1978. It focuses on building high-quality residences and mixed-used projects in prime locations. The firm owns and operates a premier investment portfolio of office, commercial, and residential properties.
Last year, the company won the bid for a commercial and residential site in Wuhan City for a total consideration of Rmb6.42 billion ($928 million). It also acquired a commercial site in Qianhai in the province of Shenzhen.