china property

Greentown and Wharf team up for Hangzhou residential project

PUBLISHED : Tuesday, 30 December, 2014, 10:19am
UPDATED : Tuesday, 30 December, 2014, 10:19am

Mainland developer Greentown China said on Tuesday it will develop a new residential project in Hangzhou with Hong Kong’s Wharf (Holdings) after jointly winning a piece of land for 480.5 million yuan (HK$600.1 million).

Greentown said in a stock exchange announcement said they had won the bidding for a 21,282 square metre plot of land in Hangzhou’s southern Xiaoshan district on Monday. They plan to form a 50:50 joint venture to develop residential properties on the land with a total gross floor area of approximately 53,205 square metres. The two companies had paid a 144 million yuan deposit for the land, the announcement said.

The news follows a series of controversies surrounding Greentown’s founder Song Weiping and ownership of the company in recent months.

Greentown last week introduced China Communications Construction Group (CCCG), a state-owned construction firm, as the new buyer of a 24.3 per cent stake worth HK$6.01 billion it was originally going to sell to fellow mainland developer Sunac China. That deal, made in May, was cancelled earlier this month after Song said it was “a mistake”.

Wharf, which is the landlord of major shopping centres in Hong Kong such as Harbour City in Tsim Sha Tsui and Times Square in Causeway Bay, holds a 24.3 per cent stake in Greentown together with its subsidiaries.

Upon completion of the new deal, Wharf and CCCG will become the two largest shareholders with equal stakes, while Song and the retiring Shou Bainian, currently Greentown’s chief executive, will hold a combined stake of 18.5 per cent.