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SHENYANG, CHINA-A development-ready, 104-acre tract of land here is changing hands for approximately $90 million. The property, on Chessboard Mountain, has been entitled for 4,033 units of mostly high-rise condominium housing. The development is called Galaxy Bay.

The seller was a subsidiary of publicly held Great China International Holdings that paid $56.7 million for the property at public auction in February of this year. To pay for the acquisition and complete infrastructure work, the subsidiary in July took out a $74 million in loans from Shenyang City Commercial Bank.

In August, as infrastructure work got underway, Hong Kong-based American Appraisal China Limited appraised the property at $88 million at estimated the aggregate resale market price of the completed development at $488.8 million. The appraisal assumes that the average market price for the condominiums will be $46.50 per sf.

In November, the Great China subsidiary agreed to sell the development to a 50-50 joint venture of Beijing Capital Land Ltd. and Reco Ziyang Pte Ltd. As part of the transaction, the JV will assume the aforementioned $74 million in loans and pay an additional $16 million for the Great China subsidiary to complete infrastructure work in 2007. The transaction is expected to close before the end of the year.

Great China’s wholly owned subsidiary, Shenyang Maryland International Industry Co. Ltd., is one of the largest non-state-owned real estate developers in Northeast China. Great China officials say they opted to sell Galaxy Bay after determining the development could require capital expenditures greater than what it can fund under current circumstances. Great China was unable to sell the project for more than its capital investment due to restrictions on real estate speculation in the PRC.

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