Chinese developers Evergrande and Vanke acquire land in Shenzhen for combined US$1.3b
Only 30 per cent of built up area can be sold by developers, says city’s land authority
Two of China’s largest property developers have acquired land in the southern city of Shenzhen, also known as the country’s “Silicon Valley”, the Shenzhen Land and Real Estate Exchange Centre announced yesterday.
China Evergrande Group, which is based in Guangdong province and listed in Hong Kong, is the country’s second-largest developer by sales volume. It acquired 10,376 square metres for 5.5 billion yuan (US$833.84 million), while China Vanke, which is based in Shenzhen, acquired a 19,227.53 plot for 3.1 billion yuan, according to the exchange centre.
The two pieces of land are in the city’s southwestern Nanshan district. The area, with a population of about one million, is referred to as the “super headquarters” of Shenzhen Bay, a port of entry to China along the border with Hong Kong.
On the land bought by Evergrande, only 30 per cent of built-up area can be sold – the rest cannot change hands within a period of 15 years, according to government regulations.
Vanke also faces similar restrictions – only about 30 per cent of built up area on the plot it has acquired can be transferred. The developer cannot sell the rest for 15 years as well, according to the exchange centre.
This month, Vanke also set up a fund in collaboration with ICBC, China’s largest bank, to invest in distressed assets, a move that reflected a structural shift in asset trading away from new property development.