Evergrande Spends USD566 Million on Beijing Land Despite Plans to Cut Reserves
Xu Wei
DATE:  Apr 24 2020
/ SOURCE:  Yicai
Evergrande Spends USD566 Million on Beijing Land Despite Plans to Cut Reserves Evergrande Spends USD566 Million on Beijing Land Despite Plans to Cut Reserves

(Yicai Global) April 23 -- Evergrande Group, one of China’s biggest real estate firms, has won two plots of land in Beijing suburbs for CNY4 billion (USD566 million) at auction, its first time buying real estate in the capital’s open market since 2015 even though it plans to reduce its land reserves in the coming years.

The Guangdong province-based firm spent CNY1.85 billion on a residential plot in Fangshan district yesterday, The Paper reported. The parcel spans 56,728 square meters and a building area limit of 133,882 square meters, working out at around CNY10,560 (USD1,493) per square meter, the report added, saying the auction for the land began at CNY1.4 billion.

Evergrande cannot sell houses on the plot for more than CNY38,878 a square meter and the average rate must fall below CNY35,344 per square meter, according to details of the transaction.

Just a week earlier the firm paid CNY2.14 billion for land to use in the third phase of the Miyun Economic Development Zone at 15.7 percent above the auction start price. The plot covers 1,216 million square meters and has a planned construction area of 192,922 square meters, coming in at CNY11,093 per square meter.

Evergrande held its 2019 results conference on March 31, at which it was said the company would cut down on the amount of land it holds by 30 million square meters a year through 2022. It plans to cap its reserves at 200 million square meters.

Editor: James Boynton

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Keywords:   Evergrande,Beijing,Properties