Vanke Buys Two Chengdu Land Plots for USD672 Million; Must Build, Donate 1,175 Apartments to Government
Dou Shicong
DATE:  Sep 22 2017
/ SOURCE:  Yicai
Vanke Buys Two Chengdu Land Plots for USD672 Million; Must Build, Donate 1,175 Apartments to Government Vanke Buys Two Chengdu Land Plots for USD672 Million; Must Build, Donate 1,175 Apartments to Government

(Yicai Global) Sept. 22 -- Chinese property giant China Vanke Co. [SHE:000002] has bought two land parcels in Chengdu in China's southwestern Sichuan province for CNY4.43 billion (USD672 million) under the condition it builds 1,175 apartments for talent, which will be transferred to the government for free to lease out.

Chengdu put up three land plots, covering a total area of 313,600 square meters, up for auction yesterday, online Chinese news outlet The Paper reported. Vanke snapped up two of the plots, including the largest, which cost USD572.9 million at an average price of USD1,456 a square meter, marking a premium of 36.75 percent.

Poly Real Estate Group Co. [SHA:600048] took the remaining plot for USD414 million.

Chengdu is one of China's first 13 pilot cities to construct rental housing on collectively-owned land. Once complete, the rental apartments may be held and rented by developers themselves or handed to the government to manage for free, as per regulations issued by the city four days ago.

The bids made at the auction had to include both a monetary price and a number of units which would be offered for free to the government.

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Keywords:   MSCI,Chengdu,Rental Housing,Government Housing,Talent,REAL ESTATE