China - New 1.3 million sq m Mixed-use Project Proposed In Yinchuan
August 21, 2012
The residential-cum-commercial project will be headed by former CEO of DBS Land Han Cheng Fong.
A new mixed-use development by former DBS Land and Fraser & Neave (F&N) Han Cheng Fong is set to rise in Yinchuan.
Comprising a mix of residential and commercial units in a 80:20 ratio, the development is estimated to span over 1.3 million sq m. To be completed over three phases, the project will be spearheaded by Han, which has committed RMB 150 million into the project.
The development will be held by three parties - Han's Brilliance International Investment, Chuan Zhong Tuo Property Holding and Chang He Investment in a 40:40:20 ratio.
The unnamed project will offer a variety of residential units, including low- and high-rise apartments, bungalows and terrace houses. There will also be retail units built.
The first phase of the project is estimated to achieve over RMB 2 billion in market value. It will consist of retail shop units and an entertainment centre, as well as 2,200 residential units. Construction for the first phase is scheduled to commence in end-2012 and is expected to last two years.
Following on, the second and third phases featuring 6,000 more residential units will be carried out over the next five to seven years.
Han, who estimates a 30% to 40% gross profit for the project, said "We think this is (the) right time to go in, when the market is showing signs of turning and we have also negotiated a reasonably good deal, which is attractive to the government for what we can do, and attractive for us as the price should bring us a good return."
The project in Yinchuan will be Han's second China venture. Previously, Han developed a five-star hotel and four-unit offices with a shopping podium in Chengdu.
Tags: Commercial real estate, Business space, Income properties