Hongkong Land is arguably the biggest land owner in the Central district of Hong Kong. The company has recently sealed a mega deal for a residential plot located in the Jiangbei District, Nanjing. The deal was sealed for a whopping $652 million or roughly RMB 4.49 billion as per estimates. Hongkong Land is now going ahead with several new projects in the city at present. The company has already developed prime projects like the Exchange Square and Jardine House. The company has been awarded the tender for the Jiangbei District plot 2018G07 which is a site spanning 115, 400 square metres. There were 71 bidding rounds and the winning bid was around 18.5% above the reserve price at the auction.
The new plot is the third mainland plot acquisition by Hongkong Land over the last couple of years. The developer which is majorly controlled by the Jardine Matheson Group in Hong Kong will be adding its venture in the high-tech zone in Nanjing to a portfolio that is growing rapidly in the capital of Jiangsu province in eastern China. This latest site is situated in the Jiangbei New Area in Nanjing and is a major technology hub which has become more popular ever since the announcement of a chip fab worth $3 billion by TSMC (semi-conductor manufacturer) for this economic development area. The plot bought by the company is located to the northern direction from the Changjiang River between the Wanshou and Pubin Roads.
Hongkong Land is betting big on the residential real estate market in Hong Kong over the next few years and up to 253, 880 square metres spanning housing units can be built on this plot based on a plot ratio lower than 2.2 set by the land use permits. The unit price could be around RMB 17, 682 for every square metre. The average prices for new housing units in the Jiangbei District touched around RMB 23, 347 per square metre in April 2018 as per reports. The development potential of the area has already drawn around 100 semiconductor firms as per several studies and the local government has targeted RMB 100 billion in annual semiconductor manufacturing in this district by the year 2020. Real estate projects in this area have already been developed by top players like China Poly Group, Vanke and Wanda among others.
