Tencent, Hony Capital Buy Land In Shenzhen’s Qianhai Economic Zone

Chinese internet giant Tencent Holdings and private equity firm Hony Capital have bought land in Shenzen’s Qianhai economic zone for RMB2.19 billion (US$351 million), according to an announcement of the Shenzhen Real Estate Trading Center.

Tencent paid RMB1.55 billion (US$248.65 million) for the largest parcel of the land being auctioned, which covers 24,948 square meters. Hony Capital paid RMB646 million (US$102 million) for a 15,063 square-meter land lot.

At this land sale, Qianhai auctioned four sites with a total ground floor area of 582,000 square meters, with total value of RMB5.7 billion (US$914 million).

Minsheng E-commerce Co., China Minsheng Banking Corp.’s e-commerce arm, and Chinese technology firm Shenzhen Qianhai Heng Chang Technology Development Co., won the other two sites.

According to local media, Tencent will use the land to build its own bank and develop an e-commerce business center, while Hony will use the land to build its headquarter of operations.