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Greentown quits from project

GREENTOWN China Holdings Ltd, one of the country's leading real estate developers, has recently withdrawn from a residential project in Shanghai's northeastern New Jiangwan Town nearly two years after it acquired the land.

Greentown China has agreed to sell its Shanghai project company to Harbour Centre Development Ltd, a subsidiary of Hong Kong conglomerate Wharf Holdings, for about 1.23 billion yuan (US$180 million), the Hangzhou-based company said in a statement filed to the Hong Kong stock exchange yesterday. Greentown China would also pay about 1.38 billion yuan for a 40-percent stake that Harbour Centre owned in a Hangzhou property firm, according to the same filing.

"Some developers that have not progressed far with the development of their acquired land and at the same time are finding it difficult to realize cash flow, given the current economic climate, may see the sale of their land acquisition as an option available to them," said Shaun Brodie, head of research for East China operations at DTZ, a real estate services provider.

Greentown said the sale of the Shanghai project will allow the company to realize its investment in the local project and proceeds from the sale will enable it to wholly own the Hangzhou property firm which is now 60 percent owned by Greentown.

Greentown got the 59,253-square-meter land in New Jiangwan Town in Yangpu District in June 2007 for about 1.26 billion yuan, or per gross floor area price of 12,500 yuan per square meter.


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