New World Development buys majority stake in site above metro station in Guangzhou for US$690 million
- In a filing to the Hong Kong stock exchange on Tuesday, New World said it has entered an agreement with Guangzhou Metro Corporation to buy a 65 per cent stake in a key site above a rail station
Hong Kong property giant New World Development (NWD) has expanded its footprint in China’s Greater Bay Area, by buying a majority stake in a prime land site above a Guangzhou metro station for 4.78 billion yuan (US$690 million).
In a filing to the Hong Kong stock exchange on Tuesday, the company said it has entered an agreement with Guangzhou Metro Corporation to buy a 65 per cent stake in a subsidiary of the rail operator which acquired the land in November last year. They will jointly develop property projects on the land, including residential, retail, and office premises.
The 70,936 square metre-sized site sits atop the Hanxi Changlong metro station in Guangzhou, which is an important hub for transportation, logistics, and pedestrian flow in the southern part of Guangzhou, according to the filing. It is at the junction of two existing metro lines and the Foshan-Dongguan Intercity Railway, which is under construction.
“The acquisition is another strategic move of the company in the Greater Bay Area..[we] will fully utilise our strengths and ample resources of diversified business and comprehensive commercial operations, and cooperate with the vendor to turn the project into a landmark of smart commercial and residential complex in southern Guangzhou,” the filing said.
The company declined to comment beyond the public filing, but the management had repeatedly stressed how it planned to actively engaged in the development of the Guangdong-Hong Kong-Macau Bay Area.
The project is a key initiative under President Xi Jinping, underpinned by the opening of the Hong Kong-Zhuhai-Macau Bridge and a high-speed rail line from Hong Kong to Guangzhou.
NWD has a land bank of nine million square metres in China, 40 per cent of which is located in the Greater Bay Area, in cities such as Guangzhou, Foshan, and Shenzhen.
The developer’s mainland Chinese gross property sales reached 16.24 billion yuan in the fiscal year ended June 30, compared with 7.14 billion yuan for Hong Kong.