Longfor Properties Co., controlled by billionaire Wu Yajun, bought land in Hangzhou for 4.2 billion yuan ($694 million) to strengthen its presence in the capital of eastern China’s Zhejiang province.
Beijing Jinrong Xinxing Properties Co., 91.3 percent owned by Longfor, bought the 128,383-square-meter (1.38 million square-foot) plot from Hangzhou’s municipal land bureau, according to a filing to Hong Kong’s stock exchange yesterday.
The unit plans to build a 410,826-square-meter mixed residential and commercial development on the land in Hangzhou’s Binjiang district, Longfor said. It paid a 670 million yuan deposit, Beijing-based Longfor said.
The purchase is at least the second for Longfor in as many months. In December, the developer bought a residential-commercial site in Chongqing, the southwestern Chinese city that’s Wu’s hometown, for 2.52 billion yuan.
Longfor gained 1.6 percent to close at HK$11.36 in Hong Kong trading yesterday, before it announced the purchase. The stock has gained 4.8 percent in 2014, against the benchmark Hang Seng Index’s 1 percent decline.