CapitaLand buys $1.18b property in China

The mixed-used site can yield up to 1,900 residential units and a shopping mall.

CapitaLand acquired a mixed-use site in Chongquing, China for $1.18b (RMB5.7b). The 32 ha parcel is expected to yield 1,900 residential units and a shopping mall when fully developed by 2022, an announcement revealed.

With a gross floor area of 3,605,910 sqft, the land parcel that has two greenfield sites also includes brownfield sites with an inventory of 223 residential units and 1,076,391 sqft of office and retail space that are either completed or are in the pipeline.

“Given its significant scale, strategic location and excellent connectivity, the land parcel in Chongqing’s Xinpaifang is a prized acquisition that will boost CapitaLand’s land bank in a key gateway city in the South Western region of China,” CapitaLand president and group CEO Lim Ming Yan said.

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Situated in Xinpaifang, the site is within a residential and commercial zone in Liangjiang New Area which is the first national-level development area in inland China. The land parcel is also a part of Chongquing’s Free Trade Zone.

“Chongqing is one of China’s fastest growing cities with strong investment potential,” CapitaLand China CEO Lucas Loh commented. “The city’s growing population and rising income per capita have generated demand not only for residential properties but also premium retail and office spaces in central locations.”

The property is a 20-minute drive distance away from Jiangbei International Airport and it is also near key business areas including Guanyinqiao Central Business District (CBD), and Jiengfangbei CBD. The land parcel is part of a residential area home to a high-income population and is directly connected to Sports Park metro station which serves three lines.

The firm’s China portfolio accounted for 37% of its total assets in March 2018. CapitaLand’s Ascott recently launched two new properties in the Yangtze River Economic Belt.