Asia Credit:Tallying landbanking activities

　　Quite diversified landbanking activities

　　Given we are almost four months into the year, we take a quick look at someHY China developers’ landbanking activities. Relatively speaking, Sunac hasbeen one of the most active in landbanking in terms of total amount spent inthe first few months of the year among the companies we surveyed. Somedevelopers have been rather inactive – for instance, Agile and Shimao haveonly acquired one land parcel each thus far in 2016.

　　Surveying several HY developers

　　Logan has purchased two projects year-to-late April, both 100%-ownedprojects. One parcel it acquired is in Zhuhai for about RMB1bn while anotherproject is located in Foshan for RMB2.3bn.

　　Shimao, year-to-late-April, only acquired one parcel in Beijing via M&A forRMB2.5bn. This was done in March.

　　Yesterday, Aoyuan announced acquisition of 70% stake residential project (2parcels of land) in Pingshan New District in Shenzhen for RMB2.29bn. TotalGFA of the project is 217,800 sq m, and the average land cost is aboutRMB15k/sq m. According to Soufun, some other projects in the area arefetching ASPs of RMB30-50k/sq m.

　　Sunac acquired around 20 projects in 1Q16 (and no landbanking so far in April)with attributable land premium of RMB16.4bn to the developer. Sunac hasbeen very active in landbanking in the first three months, focusing mainly onTier-2 cities and adding exposure to 2-3 new cities in China.

　　Times acquired 3 projects so far this year, the Zhuhai Shizimen project, FoshanJinshazhou project, and also a 49% stake in a Guangzhou Huangpu project.

　　Greentown acquired RMB6.3bn of attributable amount of landbanking in 1Q16,consisting of two parcels, a 50%-owned Beijing project (40%: Wharf, 10%:China Communications Construction) and a 100% owned Hangzhou project.

　　Agile only acquired a project in Zhengzhou year-to-mid-April for aroundRMB0.4bn. This amount was low vs. its full year target acquisitions ofRMB10bn.

　　Land costs stayed high for most Tier-1 and key Tier 2 cities

　　According to CREIS, for 300 cities in China, the average premium of price ofland sold over the opening price was 39% in March, 2016, as compared to apremium of 8% in March, 2015. The average residential land cost wasRMB3,050/sq m for 300 cities’ land sales for March, flattish MoM. We believethat Longfor and Cifi have been ahead of the peck in terms of landbankingearlier, having acquired much landbank in 2015.