Greenland will invest 4.5b yuan in Zhengzhou
Shanghai Daily news
Shanghai Greenland Group, one of the largest property developers in Shanghai
said yesterday it will invest 4.5 billion yuan (US$560 million) in Zhengzhou,
capital city of Henan Province.
Under a cooperation framework agreement
signed by Greenland and the Zhengzhou government, Greenland will build a
280-meter highrise with a floor space of 180,000 square meters near the city's
The highrise will include a five-star hotel as well as
office and retail space. The project is expected to commence in December next
year, Greenland said in a statement.
The company also acquired a 4.34
million-square-meter plot of land in Zhengzhou's new development zone to build
apartments. Construction on the project will also start at the end of next
This is Greenland's second move in one month to expand its reach in
second-tier cities as housing sales and prices in Shanghai have dropped.
week, Greenland purchased a 40.11 percent stake in Nanjing Urban Development
Group, the biggest developer in the capital city of Jiangsu Province.
purchase enables Greenland to become Nanjing Urban's controlling shareholder.
Nanjing Urban owns development rights to a large stockpile of land in
Greenland also has the right to raise the stake by 10 percent in
Government-backed Greenland has also launched two other projects in May
in Zhengzhou, where housing prices have surged 30 percent since January to 3,323
yuan a square meter last month.
Greenland's move is one in a series by
property developers seeking bigger returns in less developed cities.
estate sector in big cities such as Shanghai and Beijing has experienced a
slowdown in prices and volume this year following regulatory measures to rein in
Hong Kong Shui On Land Limited, which has developed a host of
projects such as Xintiandi in Shanghai, started construction on a
10-billion-yuan project in Chongqing Municipality in western China last month.