Greenland Hong Kong Holdings Ltd. (337), a real estate unit of Chinese state-owned Greenland Holding Group Co., said it may create a venture to develop land it bought in Shanghai last month for 5.95 billion yuan ($983 million).
The company is in talks with a “reputable property developer” in China for the investment, according to a Hong Kong stock exchange filing yesterday. The company said it hasn’t yet set terms for the 50-50 joint venture or signed a definitive agreement. It didn’t identify the potential partner.
The company’s shares, suspended yesterday pending the announcement, will resume trading today in Hong Kong. The stock surged 20 percent to close at HK$4.62 on Jan. 8, and has gained 80 percent over the past 12 months.
Greenland can build as much as 245,550 square meters (2.64 million square feet) of commercial, office and residential floor area on the 64,980-square-meter site in the Chinese city’s Huangpu district, according to a Hong Kong exchange filing on Dec. 11.
The land is in “a prime location” and the project will generate “stable investment income,” Greenland said last month. The company is based in Shanghai, which is the primary focus of its development.
Greenland sold $700 million of 4.75 percent notes due 2016 in October to refinance current borrowings and fund projects. The company said in November that it bought office-use land in Nanning, Guangxi province.