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Participation in Housing Sales and Commercial Operations at Dalian Software Park Phase 2
March 2, 2011
Mitsui Fudosan Residential Co., Ltd.
Mitsui Fudosan Residential Co., Ltd. will join in housing sales and commercial facilities development taking place at Dalian Software Park Phase 2. Located in the city of Dalian (Liaoning Province, China), the project is being developed by Hong Kong-based developer Shui On Group and prominent Dalian-based developer Yida Group. The planned scale of the project involves some 1,900 condominium units and approximately 47,200m2 in commercial facility floor area. Construction on the entire project is scheduled to conclude in October 2014.
The city of Dalian, located in China’s Three Northeastern Provinces, was among the first to see firm economic development. Following major policy liberalization in China in 1984, Dalian became a site for processing trade, experiencing rapid and significant development centered on the regional economic and technical development zones in the 1990s. As one of the 15 sub-provincial cities in China treated as provinces in their own right, Dalian possesses a level of autonomy with respect to economic, financial and legal policy rivaling that of most provinces. In fiscal 2009, nominal GDP in Dalian was over $10,000 per capita, higher than that of Beijing. In 2010, housing sales in the city rose to roughly 80,000 units, making it one of the areas where housing needs are spiking sharply in China.
Dalian Software Park is situated in the Dalian High-Tech Zone, launched in 1991 by the Dalian government as China’s first national-level, high-technology industrial zone. The project is intended to help the city transition from an economic development zone based on processing trade by laying the foundation for its next growth phase.
Phase 1 of Dalian Software Park was successfully developed over a 7.2km2 area by the Yida Group. Spurred by this success, Phase 2 got underway in 2003. The total development area (Sites A through F) covers approximately 27km2. Mitsui Fudosan Residential will participate in the development of a total of six blocks within Site A (approx. 310,000m2 of land) and Site C (approx 1.32 million m2 of land).
Site A Once completed
Site C Once completed
- The site is located approximately 12km west of Dalian Old Town, in a prime environment offering vistas of the open sea to the south. The block will evolve into a hub for people, goods and information with the successive completion of an originating station on Subway Line No. 1 (scheduled for partial opening in 2012) now under construction, and as a transfer station for the light rail line running to Lushun (scheduled to open in FY2011).
At the center of a multifaceted development plan encompassing housing, offices, hotels and other facilities, will be Dalian Xin Tian Di, a commercial facility developed by the Shui On Group. Dalian Xin Tian Di is the sixth Xin Tian Di facility to be developed in China by the Shui On Group, which also developed the popular Shanghai Xin Tian Di area in Shanghai.
Mitsui Fudosan Residential is taking part in both housing and commercial facilities developments. In the housing development, the company is planning to adopt residential unit plans that reflect Japanese-style residential unit plans. Units will thus feature ample storage space and more efficiently designed wet areas, and will be marketed primarily to young white-collar workers employed at Software Park. In the commercial facilities development, the company plans to focus on attracting tenants offering services that support day-to-day life, such as restaurants, furniture retailers, and sellers of daily necessities. Sales of residential units at Site A are set to commence around autumn of 2011.
- Located approximately 4km west of Site A, the Site C blocks are in the heart of Dalian’s software industry–home to the offices of IBM and other influential corporations. The block also has a ‘Zero Carbon Park,’ that, as the name suggests, was built with energy conservation in mind.
In addition to office buildings, plans call for the development of commercial facilities, relatively inexpensive rental housing for young engineers, middle- to high-rise condominiums, and luxury villas. Mitsui Fudosan Residential is to take part in the middle- to high-rise condominium development and the commercial facilities business.
In housing, the plan is to increase the permanent population, and thereby spur town development. By supplying various types of housing, the plan is to offer talented engineers residential options tailored to their life stages.
This latest participation by Mitsui Fudosan Residential in the housing business in China follows earlier roles in a joint project with Marubeni Group company Shanghai House Property Development Co., Ltd., called House Huang Ma Yuan, and a joint project with Singapore governmental corporation SSTEC and Singapore-based Tiong Seng Group called Tianjin Eco-City.
The Mitsui Fudosan Group has positioned China and the rest of East Asia as a strategic area for the development of condominium housing, commercial facilities and other operations. Going forward, the Group will form alliances with influential developers such as the Shui On Group throughout Asia to aggressively promote business in major cities like Shanghai and Beijing, as well as in Tianjin, Dalian and other up-and-coming cities.
Overview of Dalian Software Park 2
|Dalian, Liaoning Province, China
(Within Dalian High-Tech Zone)
|Approx. 20km south of Dalian Zhouzhuizi International Airport. Accessible by car.
|27km2 of land, total floor area for buildings and structures: 3.54 million m2
|Housing, offices, R&D facilities, commercial facilities, hotels and resorts planned
About the Shui On Group
The Shui On Group, an HKEx listed corporate group, was established by Vincent Lo in 1971 in Hong Kong. The group first began conducting business in mainland China in 1985. The group’s paid-in capital is ¥350.0 billion apporoximately. Development of Xin Tian Di in Shanghai in the 1990s catapulted the group into a top-name brand. Today, Xin Tian Di developments by the group are in demand by provincial governments across China. The group’s business development areas consist of major cities Shanghai (Xin Tian Di, KIC, others), Dalian (Dalian Tian Di), Wuhan, Chongqing, Foshan and Hangzhou. The group won numerous awards in Hong Kong in 2008 (Best Corporate Brand Award, Best Corporate Governance Award, Best Annual Report Award, IR Gold Award, others).
About the Yida Group
Established in 1984, the Yida Group is a privately held corporate group based in Dalian. The group's operations include real estate development, interior construction, machinery manufacturing, and software (affiliated companies: 75). Yida Group served as the developer for Dalian Software Park Phase 1. In 2003 the group established a company for interior work with Matsushita Electric Works (now Panasonic Electric Works).
Project Overview (Site A, Site C)
|Lushun South Road, Dalian High-Tech Zone, Dalian, Liaoning Province, China
| Approx. 12km west of Dalian city center
|310,000km2 of land
Total floor area for buildings and structures
1.19 million m2
(Housing – approx. 540,000m2, Commercial facilities – approx. 390,000 m2, Offices and educational facilities – approx. 260,000m2 )
|Lushun South Road, Dalian High-Tech Zone, Dalian, Liaoning Province, China
|Approx. 16 km west of Dalian city center
|1.32 million km2 of land
Total floor area for buildings and structures: 1.77 million m2
(Housing – approx. 570,000m2, Commercial facilities – approx. 140,000 m2, Offices and educational facilities – approx. 1.06 million m2)