Greentown to spend up to RMB 7 bln buying land in H2

Jul. 20, 2009 (China Knowledge) - Greentown China Holdings Ltd<3900>, which is primarily engaged in residential property development, plans to spend between RMB 6 billion and RMB 7 billion on land purchases in the second half of this year, said an official, sources reported.

The official said that the enterprise has RMB 4.5 billion in cash and currently has no plans to raise capital.

In the first half of this year, the Hong Kong-listed company acquired no land and recorded contracted sales revenue of RMB 21.1 billion, whereas it reaped RMB 16 billion in the first half of last year.

Reportedly, Greentown China will inject RMB 270 million to acquire a 90% stake in a property firm whose registered capital will increase from RMB 30 million to RMB 300 million. The remaining 10% will be held by an investment firm.

After the injection, the property firm, which is located in Zhuji City, Zhejiang Province, will spend a total of RMB 2.72 billion purchasing several parcels of land from the investment firm. The parcels have a combined potential floor area of 735,200 square meters, of which 212,700 sq m are for commercial projects and 522,500 sq m are for residential projects, sources reported.