Nov 13, 2018 (China Knowledge) - Singapore-based property developer CapitaLand has won its bid for a prime mixed-use site in Guangzhou for USD 126.6 million as it makes its entry into the Guangzhou’s fast-growing office space market. The site is located in Guangzhou science city which is an innovation and technology hub.
The 4.7-hectare site will be divided into two segments, one for office, retail and serviced residence and the second for low-density strata offices. The former will take up 70% of the available space while the other 30% will be used for the latter.
The project is targeted for completion by 2022 to meet rising demand for office spaces in the area fueled by a boom in tech companies. CapitaLand will hold a 75% stake in the development with the remaining 25% held by a third party.
The move by CapitaLand is part of the company’s efforts to diversify its portfolio and capture growth in the Greater Bay Area (GBA). The GBA which was been dubbed by some as a “mini Belt and Road Initiative” represents a rising opportunity for property developers. The GBA has an economic aggregate of USD 1.8 trillion and for some companies, it represents a gateway for them into and out of China.
With this acquisition, CapitaLand now owns and manages 45 development sites across 8 cities in the GBA which includes 4 integrated developments, 4 shopping malls, 10 residential developments and 27 serviced residences.
CapitaLand has also made a move to divest nearly USD 1.45 billion worth of assets and reinvest them with higher yields of worth USD 760 million in China.
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