Land News
- Hunan News
Date: 26-Jul-2007 Sources: (Shenzhen Daily)
PROPERTY developer Beijing North Star Co. said yesterday it and a partner paid 9.2 billion yuan (US$1.22 billion) to acquire a site in the city of Changsha in Hunan Province.
The Hong Kong and Shanghai-listed company said it will set up a joint venture with Beijing Urban Development Group Ltd. to develop the site. Beijing North Star will have an 80 percent stake in the venture, while Beijing Urban will own the remainder.
The partners acquired the site, which has a total area of 785,199 square meters, in an auction. It is earmarked for mixed residential and commercial use and will have a gross floor area of up to 3.8 million square meters, Beijing North Star said in a statement.
Beijing North Star said the acquisition is part of the company's expansion beyond Beijing into other major cities.
The joint-venture partners will pay the Changsha city government in installments and Beijing North Star will fund its share using internal funds as well as bank loans.
Beijing North Star said the acquisition will require approval from its shareholders.
The company is one of Beijing's largest developers of residential and commercial projects. As of the end of last year, Beijing North Star had a land bank of over 2 million square meters in Beijing.
Analysts said Beijing North Star would benefit from the 2008 Olympics as its property portfolio comprises mostly developments within the Olympic Games Village and Asian Games Village.
The government committed to invest 180 billion yuan in infrastructure to link the Olympic Games Village with the city center, enhancing the value of Beijing North Star's property portfolio.
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