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CDL venture Sincere sees recovery in sales at Chengdu project

CHINA-BASED property developer Sincere Property Group on Thursday posted 150 million yuan (S$30.6 million) in sales for the first day of its third phase launch of its TianFengHe Mansion project in Chengdu, Sichuan province in China.

Singapore property developer City Developments Limited (CDL) acquired a 51 per cent stake in Sincere Property for 4.39 billion yuan in April this year.

Sincere Property said in a press statement that it launched 540 units out of the project's 762 units. Some 430 units or about 80 per cent of the newly-launched units were sold leading up to Nov 25.

Based on the latest confirmed sales, TianFengHe Mansion units sold in November 2020 had an average selling price of 13,700 yuan per square metre (sq m). This was 8.7 per cent higher than the 12,599 yuan per sq m for units sold in March 2020 when buyer sentiment was at its lowest, Sincere Property said.

The TianFengHe Mansion project launched in December 2019. It has an estimated saleable gross floor area (GFA) of 360,000 sq m and total sales value of up to 4.6 billion yuan.

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"Based on official data, home prices across China continue to show month-on-month growth. China is recovering well from the pandemic. Other residential projects of the Sincere group continue to report healthy growth in sales volume and selling prices," the company said.

Sincere Property also announced that it won a bid to operate more than 100,000 sq m of retail space in the upcoming Kunming Transportation Hub that will serve as a gateway linking the South-western province of Yunnan with the rest of Asia.

The group's subsidiary, Sincere Starlight Commercial Properties, beat four competitors to obtain the right to operate and manage the retail space for 15 years starting from 2024 - when the Kunming Transportation Hub opens.

The proposed hub - a large scale mixed development comprising a public transportation interchange, retail, office, hotel, residential apartments and car parks - will serve as a major multi-modal interchange serving 45 million passengers annually. It has a GFA of 608,800 sq m.

Located in the city centre, the hub will connect with the Kunming Changshui International Airport and the Kunming South train station. It will also build upon rail and road links in the region to Myanmar, Laos and Thailand.

Sincere Property said the project will be a source of recurring income. It is the second management contract Sincere Starlight won this year and both projects will provide steady asset-light recurring income for the group.

Earlier this month, CDL said it appointed Deloitte & Touche Financial Advisory Services as its external financial adviser to assist in further evaluating and reviewing its investment in Sincere Property.

This came after CDL director Kwek Leng Peck resigned last month, citing disagreements with the board and management on the group's investment in Sincere Property, as well as its management of London-based unit, Millennium & Copthorne Hotels.

Shares of mainboard-listed CDL were trading 0.6 per cent or S$0.05 lower at S$7.82 as at 2.58pm on Thursday.

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