SINGAPORE (EDGEPROP) - CapitaLand Development (CLD), the development arm of CapitaLand Group, has won bids for two prime residential sites in China’s Wuhan and Chengdu at a total price of RMB3.49 billion ($748 million).

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The site in Wuhan was clinched at a price bid of RMB2.31 billion, while the Chengdu site was secured at a price bid of RMB1.18 billion.

Wuhan is the capital of Hubei province and is the largest city in Central China. Chengdu is the capital and largest city in China’s Sichuan province.

The site in Wuhan is located in the city’s central business district (CBD) at the intersection of Fazhan Avenue and Huaihai Road in Qiaokou District. It measures 492,008 sq ft in site area with a gross floor area (GFA) of 1.57 million sq ft.

The Chengdu site is located in Chenghua district, next to the middle ring road of Northeast Chengdu. The site covers an area of 316,265 sq ft with a GFA of 790,642 sq ft.

CLD says it plans to build 1,581 quality homes catering to first-time buyers and upgraders on these sites.

Construction is slated to begin this year.

According to CLD, the newly acquired sites will boost its pipeline of residential units under development in China to 19,139 units.

Jason Leow, CEO of CLD, says, “China is one of three core markets for CLD, and we hold a long-term view of our business in the country. We are optimistic that the decisive moves taken by the authorities to reduce speculation will promote the healthy and sustained development of China's housing market in the long term.”

“We are further encouraged by the Chinese government’s recent pledge on policy easing, which is expected to set China’s real estate sector on the path to recovery. CLD stands ready to capitalise on attractive opportunities that have emerged, as seen in the two prime residential sites in Wuhan and Chengdu that we have acquired. CLD remains committed to China and we will continue to stay invested in the market to build quality real estate products and deliver healthy returns for our stakeholders,” he adds.

Tan Tze Shang, CEO of CLD (China), says, “With 28 years of experience in China, CLD is well-placed to take advantage of our strong financial position and in-house development expertise to invest in and maximise the potential of prime residential sites.”

He continues, “Wuhan and Chengdu are part of CapitaLand’s five core city clusters in China, where we have established a track record in developing and operating well-received business parks, integrated developments as well as residential, retail, office and lodging properties. We will leverage our deep market understanding of both cities to create quality and affordable homes that meet the aspirations of homebuyers. In addition to residential projects, we remain on the lookout for compelling investment opportunities across real estate asset classes to build a diversified and resilient portfolio.”