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Sunac expands in Dalian
Posted on Monday, 05 June 2017 13:33
Sunac China Holdings is getting its hands on residential and commercial land parcels in Dalian’s Binhai New District through the acquisition of Dalian Runde Qiancheng Real Estate Development for CNY 3.23 billion (USD 474.07 million).
The Cayman Islands-incorporated real estate developer is taking over the equity for CNY 3.06 billion as well as a shareholder’s loan of CNY 168.20 million owned to Dalian Jinxin and Dalian Runde Liangcheng Real Estate Development.
Sunac claims to be one of the leading sector players in China with 154 plots in total at the end of December 2016 with a focus on its core first- and second-tier cities, surrounding municipalities and core areas in China.
Last year, the group bypassed overheated markets and instead tapped into Guangzhou, Foshan, Dongguan, Zhengzhou, Xiamen, Qingdao, Nanning and Kunming while replenishing land banks in the existing locations.
As at the end of 2016 the group had projects in 44 cities, which included a 50.0 per cent stake in a venture in Dalian comprising high- and mid-rise apartments, retail properties and car parks.
Dalian Runde Qiancheng brings with it a residential and commercial plot of land in Dalian’s development zone in Binhai New District.
The 10-year-old company had a net asset value of CNY 864.69 million at the end of 2016 and booked a net loss of CNY 5.22 million for the 12 months.
It slots into Sunac’s regional focus development strategy while increasing the group’s land reserves and expansion in Dalian.
According to Zephyr, the M&A database published by Bureau van Dijk, there have already been 120 announced or completed acquisitions of estate developers and managers based in Liaoning province so far this calendar year.
The largest in 2017 to date is Tianjin Sunac Aocheng Investment buying 80.0 per cent of Tianjin Xingyao for CNY 10.25 billion.
Sunac’s purchase, which is being made through a subsidiary, will be among the top five by value, just shy of Shanghai Xinye Real Estate’s pending CNY 3.98 billion acquisition of Shanghai Xinye Real Estate.
© Zephus Ltd