Chiwayland wins land use rights in Suzhou Industrial Park

MAINBOARD-LISTED Chiwayland International's indirect wholly owned subsidiary has won the bid for the land use rights for a parcel of land in an industrial park in Suzhou City, Jiangsu Province in China for 186.47 million yuan (S$39.46 million).

In line with that, the subsidiary Suzhou Chiwayland Group Co Ltd (SZCL) has inked a contract to transfer land use rights with the Bureau of Suzhou Industry Area National Territory Real Estate.

The site which spans some 19,110.45 square metres with a plot ratio of 2.2 to 2.4 times is expected to be developed into commercial and residential units. Construction of the land parcel is expected to commence by Dec 3 next year and be completed within three years.

"We are positive on the development potential of this prime site located within the Singapore-Suzhou Industrial Park," said Qian Jianrong, executive chairman and chief executive of Chiwayland.

The site is about two kilometres away from the Water Ferris Wheel, also known as the Eye of Jinji Lake.

"With its proximity to the Jinji Lake Scenic Spot, which is a core area in Suzhou Industrial Park, and the Suzhou International Expo Centre, we believe this land acquisition would enhance our property portfolio and profitability going forward," said Mr Qian.

The firm said that the acquisition is not expected to have any material impact on its earnings per share and net tangible assets per share for the current financial year ending Dec 31, 2014.