City Dev: Acquired a prime site in Chongqing with GFA of 108.7k sqm (approx 1.2m sq ft) for Rmb540m ($112m) at Rmb5.0k psm. Co will build residential apartments comprising about 900 units and a commercial complex as the site is zoned for 80% residential and 20% commercial purposes. CDL China’s latest 2.35-ha site is located in the heart of Yuzhong District. This is the 3rd acquisition after a luxury site in Chongqing and mixed-use dev site in Suzhou.
Deutsche maintains Sell, TP$8.83. House’s China team comments that it is a good location with residential spot prices of Rmb15k-20k psm and commercial ASP’s of over Rmb18k psm in Yuzhong district.
An earlier site won by Capitaland in Nov 2011 was approx Rmb8k psm on GFA, although purportedly in a superior location. City Dev is one of the top sells according to the strategy reports by all houses for 2012 due to over-valuation and policy risks.
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