CapitaLand has won a bid for a mixed-use scheme on a 4.7-hectare greenfield site in Huangpu district within Guangzhou Science City in Guangzhou, China, for RMB882m ($127m).
The gross floor area (GFA) to be built on the site will be 142,107m² of which 70% will be for investment assets comprising office, retail space and serviced residence, and the remaining will be developed into low-density strata offices.
CapitaLand has a 75% stake in the development and the remainder held by a third party. The development is expected to be completed by 2022.
CapitaLand Group president (China and Investment Management) Lucas Loh said: “The timely acquisition of our newest mixed-use site in Guangzhou will strengthen and diversify CapitaLand’s portfolio to capture the new wave of growth in the Guangdong-Hong Kong-Macao Greater Bay Area.
“It also marks CapitaLand’s foray into Guangzhou’s booming office market. Including this latest acquisition and the two prime residential sites in Zengcheng District added in August, CapitaLand will have a diverse pipeline of multi asset types in Guangzhou coming on stream between 2021 and 2022.
“In China this year, CapitaLand has to-date divested close to S$2 billion worth of assets; and made investments into new higher-yielding assets valued at S$1.05 billion.
“CapitaLand will continue with our disciplined investment strategy to augment our land bank in fast-growing Chinese cities on a sustainable basis, while targeting an optimal mix between trading and investment properties.”
Guangzhou Science City is a major component of China’s plans to turn the Guangdong-Hong Kong-Macao Greater Bay Area from a manufacturing base into a science and technology powerhouse.
The company’s site circles a hill park in the heart of the Science City, surrounded by tech companies such as Alibaba, Intel, Samsung, Microsoft and IBM.
Along with the acquisition in Guangzhou Science City, CapitaLand currently owns/manages 45 developments across eight cities in the Guangdong-Hong Kong-Macao Greater Bay Area.
The Greater Bay Area project, launched in March 2017, is intended to integrate Guangzhou and 10 other cities along Pearl River Delta into an economic cluster with 56,000km² of land and around 70 million people.
Guangzhou is part of the five core city clusters under CapitaLand’s China strategy, comprising Beijing/Tianjin, Shanghai/Hangzhou/Suzhou/Ningbo, Guangzhou/Shenzhen, Chengdu/Chongqing/Xi’an, and Wuhan.
Image:The Guangzhou Science City in Guangzhou, China. Photo: Courtesy of CapitaLand Limited.