Hony, Tencent buy plots in Qianhai land auction
Hony Capital and Chinese internet giant Tencent Holdings have bought land in Shenzhen’s Qianhai special economic zone for RMB2.19 billion ($351 million).
Shenzhen-based Tencent won the largest piece available in the auction, paying RMB1.55 billion for a 24,947-square-meter-plot, according to an announcement. Hony bought a 15,062 square meters for RMB646 million.
At the latest land sale, Qianhai authority auctioned four sites to e-commerce, private equity and IT-related bidders. Private equity bidders were required to have at least RMB24 billion in assets under management, or other equivalent currencies worth $4 billion, in order to participate.
Minsheng E-commerce, a subsidiary of Minsheng Bank, and technology firm Shenzhen Qianhai Heng Chang won the other two sites.
As part of broader efforts to internationalize the renminbi, Qianhai was designated a testing ground for eased currency movements in June 2012. Measures include allowing private equity firms to raise renminbi-denominated funds from overseas investors.
Several high-profile PE players have bought into the idea, including John Zhao, CEO of Hony Capital, who expressed interest in raising his next local currency fund via Qianhai.
According to local media, Tencent will use the land to build its own bank - called Penguin Bank - and develop an e-commerce business center.
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