Future Land reports property sales gain in June; company chairman and property tycoon Wang Zhenhua under investigation

By Sandy Li sandy.li@scmp.com / https://www.scmp.com/property/hong-kong-china/article/3017625/future-land-reports-property-sales-gain-june-company?utm_medium=partner&utm_campaign=contentexchange&utm_source=EdgeProp | July 12, 2019 10:22 AM SGT
Future Land Development ­Holdings, the mainland developer which lost tens of billions in market capitalisation last week after its former chairman was arrested, reported a 19 per cent rise in ­contracted sales in June from the previous month, according to a stock market filing on Sunday.
Contracted sales for the month totalled 29.5 billion yuan (US$4.28 billion), representing an area of 2.53 million square metres, up from 24.7 billion yuan and 2.03 million square metres in May, the Shanghai-based property developer said in its unaudited operating statistics for June.
For the period from January to June, contracted sales reached 122.4 billion yuan, up 28.4 per cent from the same period in 2018. Contracted sales area for the period was 10.5 million square metres, representing a gain of 35 per cent on year.
The sales figures come amid difficult times for many mainland ­developers, who are increasingly being forced to sell new units at losses, or close to cost, to draw buyers and generate cash, amid a clampdown on financing that forms part of the government's campaign to pare back debt. ­Government curbs on new home prices are also hurting.
In June, Future Land acquired 11 land parcels for 6.5 billion yuan in cities including Tianjin, Wuxi and Changsha.
The company said it had also won two land parcels, with a combined land area of 107,189 square metres in the northern city of ­Taiyuan for 1.04 billion yuan through open tender. The two lots are designated for residential and commercial use.
In Anhui, the developer won three adjoining sites, with a combined land area of about 214,900 square metres for 1.03 billion yuan through open tender.
The company's shares plunged in the wake of the news, and have lost HK$33 billion in market value since the arrest was confirmed by Shanghai police last Wednesday.
On Saturday, the Central Political and Legal Affairs Commission, China's top political body responsible for law and order vowed to bring Wang and anyone else involved in the case to justice.