Greenland Sees A$80 Billion 2014 Revenue as Overseas Sales JumpNichola Saminather
Greenland Holding Group Co. expects revenue to jump to A$80 billion ($75 billion) this year driven by a doubling in overseas sales as China’s state-owned developer expands operations from the U.S. to Australia.
Greenland, which is developing projects in nine countries, expects to invest more than A$20 billion globally this year, Chairman Zhang Yuliang of the Shanghai-based company told reporters in Sydney today.
As China’s economy slows, the real estate market is also adjusting and “there are a lot of changes happening,” Zhang said. “Large real estate enterprises that have capacity” and the right conditions would go abroad, he said.
Even as Premier Li Keqiang’s government accelerates spending and cuts taxes to protect growth, analysts forecast the world’s second-biggest economy is headed for the slowest full-year expansion since 1990. New-home prices in the country fell in a record number of cities that are tracked by the government last month from May as developers cut prices to boost sales.
Greenland has announced new projects in countries including the U.S., U.K., Australia and Malaysia over the past 12 months amid slowing demand at home. The company expects revenue from its overseas businesses to double every year for the next two to three years as it ramps up developments in the new markets it’s investing in, Zhang said.
Greenland said revenue grew 33 percent to more than 330 billion yuan ($53 billion) in 2013. Shares of Greenland Hong Kong Holdings Ltd., the company’s Hong Kong-listed unit, fell 1.2 percent to HK$3.33 as of 10:53 a.m. local time.