Hang Lung Properties Ltd., the Hong Kong developer that’s building shopping malls in other parts of China, and its parent bought two sites in Kunming in southwestern China for 3.5 billion yuan ($547 million).
Hang Lung, Hong Kong’s third-biggest builder by value, won the bidding for the land, which has a maximum floor area of 401,383 square meters (4.3 million square feet) and will be used for “commercial and financial development,” the company said in a statement to Hong Kong’s stock exchange today. They are the first sites Hang Lung has bought in the nation since May 2009.
Hang Lung is investing as much as HK$50 billion ($6.4 billion) building shopping malls in cities including Shenyang, Wuxi, Tianjin and Dalian that are scheduled for completion over the next four years. Chairman Ronnie Chan said in August the company is “financially capable” of doubling that investment to tap the country’s growing luxury spending.
Kunming is the capital and largest city of Yunnan province.
The developer, which had about HK$27 billion in cash at the end of June, hasn’t bought any land in Hong Kong in at least 10 years. The company in August opened a 3.5 billion yuan shopping mall in the eastern Chinese city of Jinan, its fourth outside of Hong Kong.
Hang Lung shares have declined 33 percent this year compared with a 22 drop in the benchmark Hang Seng Index. They lost 2.8 percent yesterday to HK$24.40. Hong Kong’s financial markets were shut today because of Typhoon Nesat.