Singapore-based property developer CapitaLand plans to buy the property business of Orient Overseas International for US$2.2 billion, the Wall Street Journal reported. The purchase would give CapitaLand seven mixed-use property sites in Shanghai and Tianjin with a total gross floor area of 1.48 million square meters. Orient Overseas intends to use its US$1.06 billion gain from the sale to invest into its core business, container shipping. CapitaLand is building residential, commercial and retail property in nearly 40 cities in China; the company expects underlying property demand to remain strong. Beijing has said it will seek to prevent the rise of property bubbles by holding off inbound speculative capital while increasing the supply of affordable housing and tightening credit controls.
Categories