YANLORD Land Group has acquired a piece of land in Chengdu, China, for 1.96 billion yuan (S$403 million).
The prime residential site in Panchenggang in the Jinjiang district has an estimated total planned gross floor area of 390,660 sq m.
To fund its expansion and to beef up working capital, the Singapore-listed, China-based developer has secured a three-year syndicated term loan worth US$400 million (S$561 million).
The prized land parcel on the second ring road of Chengdu city is near key attractions such as the Sha River and Tazishan Park, an area designated for an ecological park.
This latest acquisition, via a public auction, is expected to add to Yanlord’s earlier successes in Chengdu in projects such as the Hengye International Plaza – a commercial development – and Hengye Star Garden, a high-end residential development.
It will also complement the group’s latest integrated commercial and residential development, Yanlord Landmark.
‘This latest acquisition reflects our continued confidence in the potential of the Chengdu real estate sector,’ said Yanlord chairman and chief executive Zhong Sheng Jian.
On the US$400 million term-loan facility, which drew participation from 21 banks, Mr Zhong said it demonstrated Yanlord’s ability to raise capital from both the debt and capital markets.
The amount is the largest syndicated loan to date for a non state-owned China developer, said Yanlord.
Yanlord shares ended last week up a cent at $2.28. The stock is up 155 per cent year to date.
Source: Straits Times, 21 Dec 2009