Land plot set to go under the gavel again | Shanghai Daily

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October 23, 2009

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Land plot set to go under the gavel again

A LAND parcel in downtown Huangpu District, which was sold to a domestic real estate developer at nearly 67,000 yuan (US$9,809) per square meter in 2007 but was returned to the government one year later, might go under the hammer again very soon.

The 13,709 square meter plot on Nanjing Road E., designated for commercial and office use, is slated to be reintroduced for public bidding in December, according to a preliminary notice posted yesterday on the official Website of the Shanghai Urban Planning, Land and Resources Administration Bureau.

"As far as I know, many developers, both from home and abroad, have shown great interest in this plot after the district government took it back about a year ago," said Xue Jianxiong, an analyst with E-House (China) Holdings Ltd. "Due to its prime location and the current booming market sentiment, it is possible that the plot could fetch again a record price, even equivalent or close to the previous offer from Suning."

The future successful winner of the plot must be flush with capital and experienced in development of high-end commercial properties. Interested developers are also required to pay a deposit, equivalent to 5 percent of their planned bidding price, to the bureau, according the notice.

The plot of land attracted huge market attention in August 2007 when Nanjing Suning Real Estate Development Co Ltd, a subsidiary of Suning Universal Group, agreed to pay 4.4 billion yuan, or almost 67,000 yuan per square meter, making the piece the most expensive not only in Shanghai but also nationwide.

However, one year later, the parcel was in the news again as Suning said in a statement to the Shenzhen Stock Exchange that it had reached a deal with the Huangpu District government for a reimbursement of the plot and the company didn't suffer any loss withdrawing from the deal.

Suning didn't suffer a loss because construction of a metro line station, which sits right under the plot, had hampered the timely delivery of the land to Suning, previously set for April 2008.

There is market speculation that Suning is still interested in the plot of land.




 

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