A Powerlong Real Estate Holdings Ltd. unit purchased the land use right for a plot in Yangpu district, Shanghai, for 2.98 billion Chinese yuan.
Shanghai Xiafeng Enterprises Management Co. Ltd. clinched the land use right through a tender issued June 7 by the Shanghai Yangpu Planning and Land Administration Authority. The price the unit paid reflected a minimum bid price of 1.86 billion yuan and a 60.2% premium.
The plot has an estimated gross floor area totaling 109,469.4 square meters and Shanghai Xiafeng plans to hold 74,439.2 square meters of the site for investment purposes. It intends to use 70.6% of that space to develop office towers and 29.4% to establish commercial assets, including a shopping mall. The remaining space not held for investments will be developed for sale, according to a filing.
Additionally, the land plot has a term grant of 40 years for commercial use and 50 years for office facilities, starting from the date the parties sign the land use right transfer contract.
Shanghai Xiafeng will pay for the acquisition with its internal resources.
As of June 7, US$1 was equivalent to 6.79 Chinese yuan.