Greentown China buys 2 parcels in Suzhou for RMB 6.1 bln

Sep. 24, 2009 (China Knowledge) - Greentown China Holdings Ltd<3900>, which is principally engaged in developing residential property projects, on Tuesday won the bids for two pieces of land near Jinjihu Avenue in Suzhou, Jiangsu Province for RMB 6.1 billion in total, sources reported.

The Hong Kong-listed firm beat out Sun Hung Kai Properties<0016>, China Resources Land Ltd<1109> and
China Merchants Property Development Co Ltd<000024><200024> to obtain one of the parcels for RMB 3.6 billion or RMB 28,057 per square meter of potential floor area. Greentown China acquired the other parcel for RMB 2.5 billion or RMB 20,075 per sq m of potential floor area. On the two sites, the developer's first in the city, Greentown China intends to build high-end residential properties.

Wang Hongbin, a regional manager, said that the company believes Suzhou has a bright future because the city has more potential compared with other cities in the Yangtze River Delta.

Ping An Trust has signed an agreement with Greentown China to invest up to RMB 15 billion in the property firm's projects in the next three years. It will invest between RMB 3 billion and RMB 5 billion this year.

On Sep. 19, Agricultural Bank of China granted Greentown China a two-year, RMB 10-billion credit line.