CapitaLand acquires two residential sites in China

The two value home sites in Guangzhou's Panyu District and Shanghai's Pudong District are worth S$62m and S$46m respectively.

According to OCBC, launch prices are projected to be RMB 9,000 psm for Shanghai and RMB8,000 for Guangzhou.

Here’s more from OCBC:

CapitaLand's CapitaValue Homes (CVH) unit will acquire two residential sites in Guangzhou's Panyu District and Shanghai's Pudong District for S$62m and S$46m respectively. We believe that the market would likely be neutral to slightly negative on these acquisitions due to uncertain conditions in the Chinese property market and the relatively small quantum involved.

The Guangzhou site (238k sqm GFA) will include a bus terminal and 53k sqm of social housing to be handed over to the government when completed. CVH will take a 95% stake in the Shanghai site (90k sqm GFA). In total, both sites will yield around 2,400 value homes (Guangzhou -1,500, Shanghai - 900) with an average size of 90 sqm each. Note that the value homes on both sites would also be subjected to buying restrictions; CVH is targeting, however, first-time buyers who are unaffected by restrictions.

Construction is expected to start 2Q12 and will take 2-3 years to complete, and construction cost is estimated to be RMB 2,200 - RMB2,400 psm of construction floor area. Launch prices are projected to be RMB 9,000 psm for Shanghai and RMB8,000 for Guangzhou. We estimate an accretion to RNAV of 1.5 cents which lifts our fair value estimate marginally up to S$2.92 per share from S$2.91 per share previously (20% discount to RNAV).

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia