Yuexiu Property acquires Hangzhou land parcel for 986m yuan

YUEXIU Property Company has acquired a land parcel in China's Zhejiang province for 986 million yuan (S$198.4 million) by way of open tender through its indirect non-wholly-owned subsidiary.

The Hangzhou Jianggan Niu Tian Land Parcel has a site area of about 23,592 square metres and a total gross floor area of about 76,792 square metres, of which the permissible gross floor area amounts to about 56,621 square metres and the underground gross floor area amounts to about 20,171 square metres. The average land cost based on the total gross floor area amounts to about 12,800 yuan per square metre.

The parcel of land is for residential use. It is located in Jianggan District in Hangzhou City, Zhejiang Province. The land parcel is also close to the Jiuhe Road Station on Line 1 of the Hangzhou Metro and directly accessible to the main district via the Desheng Expressway and the Genshan Road. The parcel of land is situated in Genbei New City, a core development area earmarked by the Hangzhou municipal government.

Yuexiu said its board of directors believes that the land acquisition falls in line with the company's strategy of focus on three core regions, namely Greater Guangzhou, Central China and Yangtze River Delta, with greater Guangzhou as the centre, Wuhan and Hangzhou as the "pillars for growth".

Following the acquisition of the Hangzhou Jianggan Niu Tian Land Parcel, the company's land bank in the Yangtze River Delta region reaches 2.46 million square metres.

Yuexiu's overall land bank as of July 10 covered about 13.76 million square metres. The listed company plans to apply the employee incentive scheme, first announced on Feb 5, 2015, to the development of Hangzhou Jiangnan Niu Tian land parcel.

The scheme provides for certain local management team members and core staff to make an equity investment in the respective project company through a fund structure. The aggregate equity interest held by all the eligible participants of the scheme in the relevant project company will be less than 10 per cent of its total equity. "It is expected that no director or chief executive of the company, or any other connected person of the company at the issuer level, will participate in the scheme in respect of the project," Yuexiu said.