Chinese developer Greenland inks US$12.8b PPP projects in Xi’an
Investments will include four housing and commercial cluster projects in the capital of Shaanxi Province, as well as land development along subway lines
Greenland Holding, the Chinese mainland property major, has inked 100 billion yuan (US$12.8 billion) worth of public private partnership (PPP) projects in Xi’an – upping its ante in government-led urban development.
The mainland’s fourth-largest developer by sales announced on Friday the investment will include four housing and commercial cluster projects in the capital of Shaanxi Province, in China’s northwest, as well as land development along subway lines.
“Greenland will focus on the city’s layout in a medium- to longer-perspective and optimise its development space with diversified investment,” said chairman and CEO Zhang Yuliang.
The Shanghai-based, state-owned developer has been stepping up diversification in recent years as its existing real estate business is under pressure due to soaring land prices and strict regulations to stem China’s red-hot property market.
Zhang said Greenland is expanding into infrastructural development, financial services, recreation and technology.
The developer reported flat earnings for the first half of this year in August, with net profit of 4.66 billion yuan, up by a slender 1.3 per cent year-on-year, on sales of 126 billion yuan.
The developer predicts the government’s measures to cool the property sector will continue in the second half, although strong housing demand will cast bright spots to serviced flats and hotels.
Greenland’s A-shares slipped 1.7 per cent in value on Friday to 7.37 yuan.