Prime Beijing plot auctioned for record $600M

By Hou Lei (chinadaily.com.cn)
Updated: 2009-07-01 16:23

Franshion Properties (China) Ltd, a major developer in China, won the bid for a plot called "No. 15 Guangqu Road" at a record high price of 4.06 billion yuan (US$600 million) Tuesday.

The plot, with a planned floor area of 280,000 square meters, is located near Beijing's Central Business District (CBD), widely regarded as a prime area in the capital city.

The land value in terms of per unit floor space is up to 14,500 yuan (US$2,053) per squre meter.

Zhuhai-headquartered Franshion Properties (China) Ltd, which is affiliated with the Sinochem Corporation, is a leading real estate developer in China. The company mainly focuses on developing high-end commercial real estate projects, according to the introduction on its website.

"We will develop this project into a high-end complex," said Gai Jiangao, deputy general manager of Franshion Properties, after the auction. But he refused to disclose the selling price of each unit. Experts estimated that the price of apartments in the compound will be no less than 20,000 yuan (US$2,933) per square meter.

Eleven real estate developers including Soho China and Poly Real Estate also bid for the "No. 15 Guangqu Road" plot.

Before this auction, China's most expensive plot was the Hongen Temple plot in the southwestern Chongqing municipality at a price of 3.81 billion yuan (US$559 million),which was auctioned off June 25.

Since last Wednesday, eleven plots have been auctioned in Beijing.