Wilmar unit bidding for 6 land sites in China

Mainboard-listed commodities giant Wilmar International said on Wednesday its wholly-owned subsidiary WCA is bidding for six land sites in Liaoning Province, China.

This will be done through a joint bid agreement with two companies – Kerry Properties and Shangri-La China.

The sites are designated for residential and commercial use and have a total gross site area of about 566,000 square metres.

The land-use rights of the sites are 70 years for residential use and 40 years for commercial use.

Wilmar said if any of the joint bids are successful, the three companies will establish one or more joint venture companies for the purpose of acquiring, holding and developing the sites.

The three companies have paid a total deposit of 271.6 million yuan to the Chinese authorities to qualify for the open bid to be held on January 5 next year.

Wilmar said demand for residential, commercial and hotel property in second- and third-tier cities in China is expected to expand strongly in the future and it is tapping into this growing demand.

The announcement comes after the company said earlier this month that it had partnered the same two firms to bid for other project sites also in Liaoning Province, China.

Wilmar shares rose six cents to close at S$5.69 on Wednesday.

Source : Channel NewsAsia – 29 Dec 2010

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