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GuocoLand's China unit wins tender for 4 land plots at 3.64b yuan

Tuesday, November 29, 2016 - 20:46

A CHINESE unit of Singapore-listed GuocoLand Limited has won the tender for four land parcels in Chongqing at 3.64 billion yuan (S$753.8 million). It will be developing a mixed development comprising retail, business and residential under a project company that will be set up as a wholly owned subsidiary.

In an announcement on Tuesday, GuocoLand said that its wholly owned unit GLL Chengdu Pte Ltd has won the construction land use right for the four plots spanning 48,961 square metres (sq m) in land area, with a total above ground gross floor area of 513,600 sq m.

They are located within the Jiefangbei (Liberation Square) Commercial Belt with a view of the Yangtze River, in the Yuzhong District, a key district of Chongqing, and is well connected to the surrounding districts via a massive network of metro lines and bridges.

GuocoLand said that it has entered into a memorandum of general agreement with Hong Leong Holdings (China) Pte Ltd (HLHC) for the latter to participate in the acquisition and development of the land parcels through subscription of new shares in GLL Chengdu.

HLHC will hold a quarter of the enlarged issued share capital of GLL Chengdu, with GuocoLand owning the rest. As a subsidiary of Hong Leong Investment Holdings Pte Ltd, HLHL is deemed an "interested person" of GuocoLand under Singapore listing rules.

Malaysian billionaires Quek Leng Chan and brother Kwek Leng Hai are directors of GuocoLand and shareholders of HLHL. The Quek/Kwek family owns Hong Leong Company (Malaysia) Bhd, which in turn owns about 71 per cent of GuocoLand.

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