Singapore-based property developer CapitaLand announced on Wednesday that it has acquired a 32-hectare prime mixed-used site in Chongqing, China for a total consideration of RMB 5.7 billion ($867 million).

In a statement, CapitaLand said the acquisition will add over 2,100 units to its residential pipeline in China and double its retail network in Chongqing, considered a gateway to China’s fast-growing western region.

The acquisition covers two greenfield sites that are expected to yield 1,900 residential units and a shopping mall with a combined gross floor area, excluding car park, of 335,000 square meters, when fully developed, by 2022.

The land parcel also has an inventory of 223 residential units and 100,000 square meters of office and retail space. CapitaLand said it takes over the property by acquiring all the shares in a company that owns the site.

The site is located in Xinpaifang, a mature residential and commercial zone in Liangjiang New Area, the first national-level development area in inland China and a part of Chongqing’s Free Trade Zone.

It is a mere 20-minute drive from Jiangbei International Airport and a short distance from Guanyinqiao Central Business District (CBD) as well as Jiefangbei CBD, which is next to Raffles City Chongqing.

“Given its significant scale, strategic location and excellent connectivity, the land parcel in Chongqing’s Xinpaifang is a prized acquisition that will boost CapitaLand’s land bank in a key gateway city in the South Western region of China,” said Lim Ming Yan, President & Group CEO, CapitaLand Group.

In 2017, Chongqing’s annual GDP grew 9.3 per cent, outpacing the national average of 6.9 per cent. The city’s fortunes are set to rise further with a raft of economic initiatives in its favour, such as the Belt and Road Initiative and Yangtze River Economic Belt promotional plans.

“Relative to other Chinese cities, Chongqing’s property market has been more stable, thanks to the municipal government’s proactive efforts to moderate market supply and demand,” said CapitaLand China CEO Lucas Loh.

CapitaLand also manages seven other serviced residences in Chongqing through its wholly owned service residence arm The Ascott Limited.

Early this year, the property developer sold its interest in 20 retail shopping malls in China to China Vanke’s commercial property unit SCP Group for about $1.3 billion.

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