PRSEA | Sep 05, 2011 |

GuocoLand China, owned by Singapore-listed GuocoLand Ltd, the investment arm of Malaysian conglomerate Hong Leong Group, has bought the Xinzhongijie land parcel opposite the Dongzhimen transportation hub in Beijing. The land might be the last piece of land left in the prime area.

The land is currently occupied by old and dilapidated houses with more than 2,700 households but city planners have designated the land for high-end commercial development, a combination that so far has deterred potential developers.

Group managing director, Violet Lee, said GuocoLand China should take advantage of the good connections it has established with the local government over the years.

GuocoLand China has signed a strategic cooperation agreement with Beijing Oriental Real Estate Investment and the two companies will share responsibility for the planning and administration of the land to meet the standard preconditions for the land grant. Their responsibilities also include resettlement and payment of compensation as well as land levelling and construction of public infrastructure.

Beijing Oriental Real Estate chairman, Zhang Yue said the actual cost of resettlement is still unknown.

According to The Star, the initial plan proposed by GuocoLand China is to connect both the Dongzhimen and Dongsishitiao subway stations with an underground shopping mall selling high-end fashion products and services.

GuocoLand China has already developed its iconic Guoson Centre project on top of the Dongzhimen transportation hub. The 600,000 sqm development includes Guoson Mall, a five-star British-styled Guoman Hotel, grade A office towers, high-end residences and a 40,000 sqm rooftop garden.

Tags: beijing land parcel • china real estate •oriental real estate, investment arm, Malaysian, shopping mall, grade A Office towers,  dongzhimen • guocoland ltd

Courtesy of- http://www.property-report.com/site/guocoland-china-buys-one-of-beijing-largest-land-parcels-15683