Thursday, July 28, 2011

City Dev

City Dev: its China unit has acquired a 296k sm prime site located in the heart of the Suzhou Industrial Park, where it intends to construct 750 high-end residential apartments, an office tower, retail mall and luxury hotel on the site.

The land was acquired through gov tender for RMB 886m ($167m), which represents a psm ppr of RMB 3k. CDL is in discussions with local developer Genway Housing Development Group to participate in the project.

This comes 7 months after CDL’s first foray into the China market where the co clinched a residential development site to build luxury villas in Chongqing for RMB 232m. CDL has set aside $300m for its entry into China. Land cost, combined with devt and other costs for these projects should already take up a substantial slice of this amount.

Stock currently trades at 1.5X P/B. Credit Suisse yday maintained Outperform with TP $15.74.

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