Greenland Hong Kong to Buy Shanghai Land for $980 Million

Greenland Hong Kong Holdings Ltd., a real estate unit of Chinese state-owned Greenland Group, will buy land in Shanghai designed for mixed-use development for 5.95 billion yuan ($980 million).

The company 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 yesterday.

The land is in “a prime location” and the project will generate “stable investment income,” Greenland said. 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 last month that it bought office-use land in Nanning, Guangxi province.

The company’s shares, suspended yesterday afternoon pending an announcement on the purchase, will resume trading today in Hong Kong, according to the filing. The stock fell 3 percent to HK$3.90 yesterday before halting.

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