Xinyuan Grabs 4 Land Parcels in China
- Dec 11, 2013
Xinyuan Real Estate Co. has acquired four land parcels in China via auction and intends to primarily develop apartments.
Located in Jinan, Shandong Province, the first two land parcels are adjacent to each other and offer a total site area of approximately 140,155 square meters (1.5 million square feet). The land parcels are next to the city’s high-speed railway station and Xinyuan paid a total of RMB 1.2 billion (approximately $197 million) for the land use rights. The residential real estate developer plans to develop high-rise residential apartments on the site with a total estimated gross floor area of around 420,465 square meters (4,525,847 square feet).
The other two land parcels are located in Xingyang, Henan Province. The parcels, acquired for a total of RMB 125 million (around $21 million), are adjacent to one another and are also situated next to a 47,710-square-meter (513,546-square-foot) land parcel acquired by Xinyuan in September, 2013. The company plans to integrate the two new land parcels and develop them as one project for a total site area of around 48,359 square meters (520,531 square feet). The company plans to primarily develop residential apartment on the site with a total estimated gross floor area of approximately 120,898 square meters (1.3 million square feet).
“We are pleased to have increased our project under planning inventory in Jinan and the greater Zhengzhou area, two important markets for Xinyuan, in which we have strong development project experience,” said Yong Zhang, chairman of Xinyuan. “We have been quite active with our land development projects recently. With today’s announcement, we have acquired nine new land parcels, or five projects since September. Most of these projects are expected to commence pre-sales in 2014, which we believe will be a strong year for Xinyuan. We continue to evaluate other land acquisitions with a focus on strong investment returns.”
Xinyuan is taking advantage of the incredible growth rate of China’s cities and aims to supply the growing demand for residential developments. As previously reported by CPE writer Alex Girda, Xinyuan last month revealed plans to develop a residential community occupying more than 1.5 million square feet in Kunshan, Jiangsu Province. The residential development became the fifth construction project announced by the company in the space of two months in the Jiangsu Province.