Shanghai Lüshun Real Estate Co, a subsidiary of Hangzhou-based property developer Greentown China Holdings, paid 1.64 billion yuan ($25.58 million) at auction Wednesday for a plot of land in Shanghai.

The company plans to use the plot, which is located in Pudong district, to build 7-10-story residential properties, which are expected to go up for sale by the end this year, according to  Xia Songhua, the general manager of Greentown China's Lüyu Property Development Co. 

This is Greentown China's first land purchase so far in 2012. Around 10 bidders took part in the auction.