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Greenland increases land reserves in first-tier cities

Updated: 2013-02-27 21:31
By WANG YING in Shanghai ( chinadaily.com.cn)

Shanghai-based property developer Greenland Group, which has become active in land bidding recently, has added a 2.2 billion yuan ($353 million) land parcel in Beijing to its list of latest acquisitions, sources said.

As first-tier cities outperform smaller ones during the market recovery, Greenland is shifting its focus to the major cities.

Greenland Chairman Zhang Yuliang said the company plans to spend 80 billion yuan on land this year, China Business News reported on Feb 26.

Public information shows that Greenland and a Beijing-based construction company bought the 2.2 billion yuan parcel in the capital's Changping district on Feb 25. The two partners also bought a plot in the same district for 1 billion yuan. Greenland by itself bought another two plots in Changping for 1.2 billion yuan on the same day.

On Dec 12, Greenland jointly bid a commercial land parcel for 5.4 billion yuan with three other companies, including China Vanke Co, the nation's biggest developer by market value.

Zhang Hongwei, research director of Shanghai-based property consultancy ToSpur, said it takes Greenland only three months after buying land to start construction.

"When the land price is relatively low, the company is eager to change capital into land reserves and start a new round of rapid development for higher proceeds," Zhang said.

wang_ying@chinadaily.com.cn

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