Yanlord Land Group

Fierce bidding secures Suzhou site for Yanlord

2007/6/22
Singapore-listed Yanlord Land Group has outbid 10 Hong Kong and mainland developers for a mixed-use site in Suzhou, paying 2.16 billion yuan for the property to strengthen its foothold in the fast-growing mainland city.

The company said it secured the site on 20 June after 281 rounds of fierce bidding by a number of rivals including China Resources Land and China Merchants in the auction hall.

The price paid represented 6,400 yuan per square metre. Yanlord’s winning bid, which was 82.68 per cent above the 1.18 billion yuan opening bid, and the number of developers who took part reflected strong confidence in the Suzhou market, property agents said.

About 80km from Shanghai, the site is on a small island on Jinji Lake in Wuzhong district, near the city centre of Suzhou.

The site would be developed into a luxury residential zone with town-houses, fully fitted flats, ancillary commercial facilities and serviced apartments, according to the company.

The total gross floor area is expected to be 336,778 square metres.

The acquisition will further expand Yanlord’s land bank in the city where it is developing 3 residential projects close to the newly bought site.

Developers are expanding into Suzhou, as its economic growth has been helped by proximity to the financial centre of Shanghai.

Hong Kong developers that have entered the city include Henderson Land Development, China Overseas Land and Wharf Holdings.

Suzhou’s disposable income per capita almost doubled to 18,532 yuan last year from 10,515 yuan in 2001, one of the highest in the Yangtze River Delta, according to Yanlord chairman Zhong Shengjian.
Yanlord began investing in Shanghai property a decade ago and has extended its project to second-tier cities, including Guiyang, Chengdu, Suzhou, Tianjin and Zhuhai. 《South China Morning Post》