CHIWAYLAND INTERNATIONAL is expanding its presence into central China in a joint venture to develop real estate in Wuhan.
- Qian Jianrong
“We are seeing increasing segmentation of the property markets in China. Economically vibrant cities are moving ahead, while others are stagnating due to over-supply. Cities which offer good economic prospects are attracting new immigrants and overseas returnees.
"Population growth will continue in these cities, leading to steady demand for housing and other amenities, such as schools and local malls," said CEO Qian Jianrong.
On Thursday (28 July), Chiwayland’s subsidiary, Suzhou Chiway Shangcheng Real Estate Co Ltd (Suzhou Chiway), entered into a joint venture agreement for a high-end residential development with Modern Green Development Co Ltd (Modern Green).
Modern Green is a wholly-owned subsidiary of Modern Land (China), an established real estate developer listed in Hong Kong that specialises in energy efficient homes.
|4.1 – 14.8 cents
Modern Green’s wholly-owned subsidiary, Shengeng Hongye Development (Beijing) Co Ltd, was recently awarded the tender for a 13,270 sqm land parcel in Wuhan’s core urban core district in Jianghan. The land parcel has been a plot ratio of 3.0.
Suzhou Chiway will use internal cash resources to contribute Rmb 4.9 million for a 49% stake in the JV while Modern Green will contribute Rmb 5.1 million for a 51% stake.
The Group's project launch pipeline this year includes four new projects in Suzhou and one in Nanjing with a total gross floor area of 233,038 sqm and a gross development value of RMB 6.1 billion.
|♦ Global property player in the making
The Group's strategy is to become a global property player with at least half of its revenue derived from outside China within the next five years. It is seeking shareholders' approval at its EGM next month to expand in North America, Western Europe and Asia.