Guangzhou Investment, the property arm of the city government, is spending 3 billion yuan (HK$3.4 billion) on land acquisitions this year as it makes a concerted push in the property market. General manager Zhang Shaoxing disclosed the strategy yesterday as the company started leasing the 103-storey Guangzhou International Finance Centre, which it calls the tallest building in southern China. After buying five plots of lands for nearly 2 billion yuan in the past six months, the company still has about 1 billion yuan to spend on land acquisitions in the coming months, Mr Zhang said. 'We are ready to buy whenever the land is good,' he said. The firm said it was optimistic about the property market's outlook for the second half of the year, citing rising prices largely driven by demand rather than speculation. A senior executive hinted that the company might spin off Guangzhou Transport because it wanted to focus on property projects. 'Roads promise good cash flow but we won't rule out streamlining the company's structure in the future,' he said. 'We are studying all possibilities.' Guangzhou Transport reported annual toll revenue of HK$1.01 billion last year and profit attributable to equity holders of HK$608 million, both record highs. Since the group has a 45.28 per cent equity interest in Guangzhou Transport, it had a share of its profit amounting to HK$275 million. The company has sold 210,000 square metres of residential space between January and June, generating 2.1 billion yuan in revenue. The full-year sales target is 450,000 square metres of residential space, which the company believes will generate about 4.4 billion yuan in revenue. Mr Zhang said he was confident the company will reach the target. The Guangzhou IFC complex consists of a hotel, service flats, retail space, convention facilities and grade A office spaces. It will lease 78,000 square metres to the Four Seasons Hotel, which will occupy the 67th to 100th storeys of the building. Guangzhou Friendship Department Store will lease 500,000 square metres of commercial space. The company refused to disclose the rent for the Guangzhou IFC, merely stressing it would be higher than those in the same area, which is about 200 yuan per square metre.