Sun Hung Kai Properties Aligns Genway in Land Acquisition
Sun Hung Kai Properties of Hong Kong, in alliance with SIP Genway Group, acquired a well-located land parcel in SIP at the price of 1.54442 billion RMB at public bidding on Dec. 6, which signals the trend of forming alliances among real estate tycoons in land acquisition in Suzhou.
The said land parcel is formed by three sub-areas, one of which is located on the north of Suiyuan Road, SIP, and east of Hyatt Hotel, and planned for commercial purpose and serviced apartments. A 5-star hotel will be built here. Another two sub-areas, located to the north of Airport Highway and east of Wanghu Point, are planned as residential and commercial properties. The alliance of Sun Hung Kai Properties and Genway, being the only bidder, got the land parcel No. 20 at the bottom price.
Since the beginning of this year, a number of well-known developers have been storing up land in the CBD area for low-density residential quarters. According to the circular from Ministry of Land and Resources, complete one-lump payment is required in land use transfers, and therefore real estate enterprises tend to ally with one another to share the pressure of funds in land transactions. Real estate tycoons from outside of Suzhou would prefer partnership with local enterprises, which are familiar with the local market, to supplement each other's resources.
Dec. 7, 2007