Greenland acquires land in Beijing for RMB 3.03 bln

Jul. 7, 2009 (China Knowledge) - State-owned real estate developer Greenland Group on Jul. 6 acquired a piece of mixed-use land and a piece of residential land for a total of RMB 3.03 billion or RMB 6,605 per square meter (per sq m) of potential floor area in Huangcun Town, Daxing District, Beijing, sources reported.

The two lots, which have a combined area of 162,262 sq m and a combined potential floor area of 457,960 sq, were auctioned with a starting price of RMB 1.65 billion. 

An industry insider said that because the average property price in Daxing District is RMB 10,098 per sq m, Greenland will make a profit if it sells the properties for more than RMB 12,000 per sq m, since it only paid RMB 6,605 per sq m. 

A spokesman of the company said that Greenland intends to purchase land principally in China's municipalities this year and that Greenland will also consider acquiring land in second-tier cities, sources reported.