Capitaland

Capitaland: Secured a prime 32.0k sqm residential site in Hangzhou’s Gongshu District for Rmb1.1b ($213.3m) in a govt land tender. This translates to about Rmb13.9 ($2,662.4) per sqm ppr. Co plans to build an estimated 700 units of mid- to high-end homes on the site, with the launch of the first phase expected in 2013. Site has potential GFA of 80.1k sqm and is in Hangzhou’s upcoming Grand Canal CBD. Co is trading at P/B of 0.8x with 5 yr low at 0.6x. Capitaland has been trading in a falling trend channel since late last year. Likely to test support at $2.45.