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Modern Land takes multiple green strides to stay in the black

Beijing-based developer plans to issue green bond on Shenzhen bourse

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Many local governments are asking bidders for land plots to have some ‘green’ credentials. Photo: Bloomberg
Zheng Yangpengin Beijing
Modern Land, the Hong Kong-listed developer has always been a trend-setter of sorts in China’s highly competitive property sector. At a time when financing options are becoming increasingly difficult for mainland developers due to the various restrictions, Modern Land has not only been able to charge a premium, acquire land easily and also ensure adequate financing for its projects.

The Beijing-based firm is planning to float green bonds worth up to 2 billion yuan (HK$2.3 billion) on the mainland bourses, company officials told the Post in an interview.
Modern Land’s plans come at a time when other developers are finding it difficult to raise funds from China’s exchange-regulated bond market due to the unprecedented property market tightening.

It was also the first mainland Chinese real estate firm to issue an offshore green bond in October this year. Green bonds are bonds designed to raise funds for new and existing projects that carry environmental benefits.

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Set up in 2000, Modern Land opted for a “green, comfort and energy-efficient” path in the early 2000s to differentiate itself from peers. Its residential developments are known for green technologies such as smog purifiers, noise reduction and other systems that enable a comfortable temperature and humidity environment. Two of its projects in Beijing and Nanchang were conferred with the three-star green residential building in operation rating. Currently there are only nine such projects that are operational in China.

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