Consortium to carry out 900,000 sq ft project due for completion in 2011
Mr Cheng: Wants to create a 'premier' real estate model in Chengdu A CONSORTIUM led by Wing Tai Holdings will develop an 800 million yuan (S$161.1 million) real estate project in Chengdu, China.
Under a memorandum of understanding that Wing Tai signed yesterday with China's Chengdu Jinli Group, the consortium will own 'more than 60 per cent' of the joint venture, which means its investment will be at least 480 million yuan.
The project, in Chengdu's city centre, will have a gross floor area of about 900,000 sq ft. It will comprise hotel/serviced apartment, residential, office and retail space.
This is the consortium's first move to create a real estate development and investment platform in China after it was set up earlier this year.
Wing Tai said in May that it would lead a multinational consortium to invest in and develop about US$1 billion of real estate in China.
The company entered into a strategic relationship with Germany's SEB Immobilien-Investment, Forum Partners of the US and Israel's Eilam Group.
The consortium said then that it would inject a total of US$450 million into the venture.
Wing Tai said that it will lead the consortium in identifying business opportunities and managing the venture and its assets.
It also said that the venture with the three investors is in line with its strategy to embark on a pan-Asian drive to increase its overseas earnings.
The consortium is now looking at other Chinese cities to expand into. The Chengdu project is expected to be completed in four years.
'I am confident that we will successfully develop a premier real estate model that will serve and benefit Chengdu in its rapid economic development and growth as one of China's leading cities,' said Wing Tai chairman Cheng Wai Keung.
Wing Tai's shares closed six cents higher at $3.36 yesterday. The stock has climbed 47.4 per cent this year.
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