Greenland Hong Kong outlines ambitious plans for city

PUBLISHED : Tuesday, 14 October, 2014, 1:02pm
UPDATED : Wednesday, 15 October, 2014, 4:38am

One year on from its back-door listing, Greenland Hong Kong Holdings is well on the way to securing a foothold in the city's property market, with the developer looking to break ground on a project as early as this year.

"We are actively looking for projects in Hong Kong and it's quite likely that construction of the first project in Hong Kong will start this year," said Chen Jun, the chairman and chief executive of Greenland Hong Kong. "The Hong Kong businesses will be a significant part of the company."

Shanghai Greenland Group, the mainland's second-largest developer by sales, completed a back-door listing in Hong Kong after buying 60 per cent of the enlarged issued capital of SPG Land (Holdings) in August last year.

The Hong Kong listing was part of Greenland Group's ambitious plans to step up expansion abroad, with chairman Zhang Yuliang announcing a target of 10 billion yuan (HK$12.6 billion) in overseas sales for this year.

Chen, who declined to disclose details on the company's first Hong Kong site, said Greenland Hong Kong would increase investments in the city over the coming years as it sought to achieve an annual sales target of 50 billion yuan by 2018.

At the end of last year, Greenland Hong Kong bought a commercial and residential site in Shanghai's Huangpu district for 5.95 billion yuan, the second-highest price for a plot in the city.

On the mainland, Greenland Hong Kong will focus on first-tier cities and some provincial capitals in what Chen described as an arrangement made by the parent company.

"We'll make the most of our listing status in Hong Kong and help the parent achieve its targets outside the mainland," he said. "The parent, with its financial strength and good image, is also giving us full support to improve our performance."

Chen, who is also an executive vice-president of Greenland Group, said sales of the Hong Kong-listed subsidiary would reach 12 billion yuan this year and were likely to hit 20 billion yuan nest year.

The Hong Kong business was likely to account for about 10 per cent of the total at Greenland Hong Kong after the first one or two projects were completed, he added.

Greenland Group, along with other giant developers on the mainland including China Vanke, is aggressively expanding overseas as an increasing number of mainlanders migrate, study, invest and travel abroad. The Shanghai developer has secured projects in countries such as the United States, South Korea, Malaysia and Australia.

On C-Suite, Chen Jun shares more insights into Greenland Hong Kong's expansion plans