Mainland property developer Kaisa Group Holdings Ltd. (01638.HK) has won a site in Shenzhen’s Dapeng new area for 5.4 billion yuan (US$870.87 million) after 21 rounds of bidding, China Business News reported Thursday.
The winning bid was 2 billion yuan higher than the starting price and translates to about 10,465 yuan per square meter. The 869,800 sq. m. plot, the biggest sold by the local government, will be developed into a beach resort featuring hotels and commercial apartments.
Some potential bidders including Overseas Chinese Town Holdings Co., China Resources Land Ltd. (01109.HK) and Greenland Holding Group stayed away on concern about an emerging bubble in tourism-related properties, the report said.
Kaisa Group has been strengthening its investment in first and second-tier cities since the second half of 2011 and has been active in land auctions in Guangzhou, Beijing and Shanghai.
In the Shenzhen sale, Kaisa teamed up with major shareholder Sino Life Insurance Co. Ltd. which has been aggressively investing in the city’s housing market, the report said.
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