Yanlord JV clinches site in Shanghai Pudong New District for 4.5b yuan

Singapore

A JOINT venture (JV) of Yanlord Land Group has acquired a low-density prime residential development site in Kangqiao, Pudong New District of Shanghai for 4.5 billion yuan (S$0.89 billion).

Property developer Yanlord holds a 51 per cent stake in the JV, and its partner, Huafa Industrial Co Ltd Zhuhai holds the rest.

With a plot ratio of about 1.1 times, the site will be developed into a high-end, international community.

It has a total gross floor area of 91,346 square metres, and was acquired via public land auction. The site is about a 20-minute drive from Pudong Qiantan International Business District and World Expo, and half an hour from Pudong International Airport.

Zhong Sheng Jian, Yanlord's chairman and chief executive officer, said: "This new land acquisition reiterates our confidence in the sustainable development of high-end residential market in first-tier cities."

He added: "The site is a clear site that we could commence construction shortly for pre-sale in next year to sustain the group's continuous contracted pre-sales growth in the coming years."

For the half year ended June 30, 2020, Yanlord saw a 59 per cent fall in net profit to 492.9 million yuan from 1.19 billion yuan a year ago.

Revenue for H1 2020 increased 18 per cent to 9.12 billion yuan, from 7.71 billion yuan a year earlier, owing to the increase in gross floor area delivered to customers, which was partly offset by the decrease in average selling price per square metre, Yanlord said. Earnings per share stood at 25.52 RMB cents for the half year, down from 61.52 RMB cents in the preceding year.

Shares in Yanlord closed at S$1.25 on Friday, unchanged.