A consortium led by CapitaLand is pumping in 21 billion yuan (S$4.3 billion) into developing a prime site in Chongqing, China.
It has signed a cooperation agreement with the Chongqing government.
Under the deal, the CapitaLand-led consortium will develop the site in the heart of Chongqing’s Yuzhong District into a landmark mixed development.
The development, located on a prime site in Chaotianmen, will comprise a shopping mall and eight towers for residential, office, serviced residence and hotel use, with a total gross floor area of about 817,000 square metres.
The other members of the consortium include CapitaMalls Asia and Singbridge Holdings.
CapitaLand and CapitaMalls Asia will each own a 25 per cent stake in the development, while Singbridge will hold a 30 per cent stake. The remaining 20 per cent will be held by unrelated parties.
The total development cost of the project is estimated at about S$4.3 billion and will be funded through a mix of debt and equity.
Mr Liew Mun Leong, President and CEO of CapitaLand Group, said: “With a population of 33 million people, Chongqing is one of the largest cities in the world. It is strategically positioned by the Chinese government as the gateway industrial city in western China. We envision Chongqing to be the next ‘Shanghai’.”
Noting that cooling measures have decreased property transaction volume by 30 to 50 per cent in China last year, Mayor Huang Qifan said Chongqing has bucked the trend with land sales having increased in 2011 from 2010.
The Chaotianmen project, occupying land size of approximately 91,783 square metre at 6.5 billion yuan (S$1.28 billion), is a deal that used to be common only in more developed Chinese cities like Shanghai and Beijing.
But he noted that Chongqing, whose economy is the fastest growing in China with 17.1 per cent GDP growth in 2010, is tops among Chinese cities in more than 10 economic indicators in 2011.
Source : Channel NewsAsia – 10 Jan 2012