Kerry Properties will buy a prominent site in the heart of Hangzhou's commercial district for 2.51 billion yuan in a move to beef up its presence in the mainland's secondary cities.
The developer yesterday said it planned to build a hotel, residential and commercial shopping complex on the site by the first quarter of 2009.
It said the property consisted of five plots near the famous West Lake and the commercial district of Yan An Road with a total developable area of 67,374 square metres.
'Hangzhou has an active tourism industry and has benefited from the economic growth of the Yangtze River Delta,' the developer said.
'These features are expected to generate strong demand for high-end apartments and high-quality offices and commercial properties.'
Hangzhou, the capital of Zhejiang province, has been competing with Shanghai as one of the hottest property markets in the country during the past several years.
Average residential prices in the Hangzhou city centre have tripled to 10,000 yuan per square metre from 3,000 yuan since its boom in 1998.
