Shanghai. February 27 (Gasgoo.com) General Motors acquired a tract of land of 120,000 square meters from Shanghai Jinqiao Export Processing Zone Development Co at a dirt cheap price, the Shanghai-listed real estate company said in a recent announcement.
General Motors acquired the land at RMB 1,000 yuan ($139.66) per square meter, while the market price of this land is about RMB 1,800 ($151.40) per square meter. General Motors saves RMB 96 million yuan ($13.41 million) from this land transaction.
Shanghai Pudong Jinqiao said that it could acquire as much as RMB 237 million yuan ($33.10 million) in the next five years from the appreciation of land value in the surrounding areas after G.M. takes this land.
Separately, General Motors signed a land use agreement with the government of Pudong New Area last October. Under the agreement, General Motors will set up a GM China Park in Pudong New Area and both Shanghai G.M. and G.M. China will move their headquarters and other facilities into this Park.
