Xinyuan to Develop Fifth Project in China in 5 Months
- Nov 07, 2013
As China’s cities continue to develop at an incredible pace, so does the amount of residential developments in the country, leading to a large number of new projects. Xinyuan Real Estate Co. recently announced plans to develop a residential project, Kunshan, Jiangsu Province. The company now owns a transit-oriented residential project in the area after its $137.3 million acquisition of a local privately-owned real estate company, a press statement recently revealed.
The newly-acquired residential development will add a large chunk of housing to the growing area, facilitating the rise of Kunshan, a city with a population of 1.7 million. The residential community that will be developed by Xinyuan Real Estate will occupy an area of more than 1.5 million square feet. Once completed, the development will include a number of high-rise residential buildings with a gross floor area reaching around three million square feet. Xinyuan acquired equity of the local real estate company valued at approximately $93 million, as well as an additional $45 million investment to pay off the company’s debt in order to close the transaction.
This is the developer’s latest project in a construction slate that also includes four other major projects, and this newly-acquired plan is being considered a great follow-up to Kunshan International City Garden development. The company has ramped up its activity in the area, with five project announcements during the past two months.
According to the previously mentioned press release, Xinyuan Chairman, Yong Zhang, expressed the company’s enthusiasm regarding its latest Kunshan project. Xinyuan has had a great amount of success in the Jiangsu Province, having already moved “96 percent of the total sellable GFA as of June 2013.” The residential project “is located in a desirable location, near a recently opened subway line that allows for direct travel to Shanghai within 60 minutes,” Zhang added.