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Yanlord pays US$380m for 4 adjacent city plots

0 CommentsPrintE-mail Shanghai Daily, September 22, 2009
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Singapore-based property developer Yanlord Group yesterday won a heated bid when it agreed to pay more than 2.6 billion yuan (US$380 million) for four adjacent plots in Shanghai's Waigaoqiao area.

Yanlord, which specializes in developing high-end residential projects, beat out six rivals from both the mainland and overseas with a final bid of 16,115 yuan a square meter.

The company is paying more than double the price it paid in July 2008, when it acquired two nearby plots for 7,400 yuan a square meter.

The combined area that can be developed in the four latest plots is about 160,000 square meters, about equal to the two plots bought last year.

"The size of both seems suitable for the development of a high-end residential community," said Yao Weishi, deputy general manager with Shanghai Yanlord.

"We plan to develop the area into another renowned community in Shanghai, similar to Lianyang and Biyun."

The starting price for the four plots, offered in one package at the auction, was 1.22 billion yuan.

According to Yanlord, construction on plots acquired last year is scheduled to begin at the end of this year.

The city's property market has rebounded dramatically this year, with robust sales in both the new and secondary markets helping boost sentiment.

Earlier this month, China Overseas Land & Investment Ltd, a Hong Kong-listed real estate developer, acquired a site in the city's Changfeng area for a record price in China of 7 billion yuan.

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