China Overseas Land buys land in Shanghai for RMB 7 bln

Sep. 11, 2009 (China Knowledge) - China Overseas Land & Investment Ltd<0688>, a real estate subsidiary of China Overseas Holdings Ltd, said it has acquired a piece of land in Shanghai for RMB 7 billion, according to the property developer's statement.

The land parcel, located in Changfeng Business District, Putuo District, Shanghai, covers an area of 142,108 square meters, and the company will build a high-end residential project with gross floor area of 393,500 square meters on the site.

The new land acquisition is in line with China Overseas Land's overall development strategy, brand positioning and high-end product strategy in mainland China, said the company, adding that the firm considers the land premium for the site is reasonable, based on current selling prices of surrounding similar projects.

China Overseas Land said in a separate statement that its property sales hit HK$3.6 billion last month, reflecting a robust year-on-year increase of 218.8%.

Total GFA sold in August amounted to 366,600 square meters, up 166.4% from a year earlier.

During the period from January to August, China Overseas Land realized HK$34 billion in total property sales, increasing 80% year on year, while total GFA reached 3.62 million square meters, up 103.2% compared with the corresponding period of last year.