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GuocoLand to invest $1.3b in China property deal

(Reuters)
Updated: 2007-04-14 19:14

GuocoLand Ltd , the Singapore-listed property arm of Malaysian tycoon Quek Leng Chan, said late on Friday it was pumping US$1.3 billion into a property project inBeijing, making this its largest investment in China.

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Guocoland joins a growing list of Singapore developers trying to ride on a property development boom in Beijing ahead of the 2008 Olympic Games.

The company said in a statement to the Singapore Exchange it would pay US$750 million for a 90 percent stake in Beijing Cheng Jian Dong Hua Real Estate Development Co. Ltd., which owns the rights to a 106,000-square-metre site in the city's Dongzhimen district.

"Theacquisitionis in line with GuocoLand's strategy to build scalability in its property development, investment and management activities in China," the company said.

The site will be developed into an integratedretail, hotel, office, residential and transport hub, comprising two metro stations, a bus interchange and a 15-minute express rail link to Beijing's international airport.

The total development cost of the Dongzhimen site, including acquisition cost, is estimated at US$1.3 billion, GuocoLand said.

Guocoland said it was reviewing its requirements for funding of the project, and would announce the measures in due course.