Participation in Housing Sales in Southern China: a First for a Japanese Developer
Participation in Housing Sales Operations in Foshan Lingnan Tiandi in Foshan, Guangdong Province, China
December 1, 2011
Mitsui Fudosan Residential Co., Ltd.
Mitsui Fudosan Residential Co., Ltd. will participate in the development of a lot within the Foshan Lingnan Tiandi large-scale multi-purpose redevelopment project (Foshan, Guangdong Province, People’s Republic of China), which is being developed by Hong Kong-based developer the Shui On Group. Mitsui Fudosan Residential will participate in Lot 18 of the project, a multi-purpose development centered on residential properties for sale (three buildings, approx. 880 condominium units). Construction began in December 2011, with completion planned for March 2015.
This project represents the first housing sales business for a Japanese developer in Southern China. It is also Mitsui Fudosan Residential’s second business collaboration with the Shui On Group, following on from Dalian Software Park Phase 2 (Dalian Tian Di).
Southern China region: Fujian Province, Guangxi Zhuang Autonomous Region, Hainan Province, Guangdong Province
Located in the central part of southern Guangdong Province, Foshan enjoys a geographically favorable location, with Guangzhou neighboring to the east, and Hong Kong and Macau nearby to the south. Foshan has long been a thriving center of foreign trade based around the Pearl River Delta, one of the world’s largest manufacturing zones. Following the undertaking of major external trade policy liberalization in China, Foshan has achieved a high GDP growth rate of more than 17% (average growth rate for the past five years), mainly through closely coordinated economic policies with neighboring cities.
Foshan Lingnan Tiandi has direct access to two stations on the Guangzhou Metro Line 1, both of which were completed in 2010. It is a large-scale multi-purpose redevelopment project currently under development in the Chancheng District Old City in central Foshan, an area that is expected to undergo further development going forward. On a site area of 650,000 m2, the project will see the development of a Xintiandi retail property by the Shui On Group, which masterminded the popular Shanghai Xintiandi shopping destination in Shanghai, along with residential and retail properties, hotels, offices and other properties (total building floorspace: approx. 1,550,000 m2). The project will also preserve and restore 22 culturally significant structures. Examples include the Foshan Ancestral Temple (a Taoist temple constructed around the 11th century), which is a national cultural treasure in the redevelopment zone, as well as Dong Hua Li (a historical residential district from the mid-19th century).
In Lot 18, in which Mitsui Fudosan Residential will participate, plans call for the development of a high-rise residential complex comprising 3 towers that are 42 stories, 39 stories and 28 stories tall, close to the Pujun Beilu Station on the Guangzhou Metro Line 1 subway. A retail property, kindergarten, club house, tennis court, outdoor swimming pool and other facilities will be built around the residential complex. Residential property sales will be targeted at an extensive range of customers mainly in Foshan but also throughout the rest of Guangdong Province and as far afield as Hong Kong. Sales are scheduled to commence sometime around 2014.
Lot 18 residential units for sale (once completed)
Foshan Lingnan Tiandi (once completed)
Site before development
Foshan Lingnan Tiandi (once completed)
Xintiandi, once completed
Mitsui Fudosan Residential’s Participation in the Lot
This latest participation by Mitsui Fudosan Residential participation in the housing business in China marks its fourth residential development project in China. Previous projects have included House Huang Ma Yuan, a joint project with Marubeni Group company Shanghai House Property Development Co., Ltd.; Tianjin Eco-City, a joint project with the Singapore governmental corporation SSTEC and the Singapore-based Tiong Seng Group; and the Dalian Software Park Phase 2, a joint development project with the Shui On Group and prominent Dalian-based local developer the Yida Group.
The Mitsui Fudosan Group has positioned China and the rest of East Asia as a strategic area for the development of condominium housing, retail properties and other operations. In August 2011, the Group commenced operations at a newly established subsidiary in Guangzhou, with the view to strengthening its structure for capturing business opportunities in Southern China. Leveraging its subsidiaries in Shanghai, Beijing and Guangzhou, the Group will actively develop the condominium housing and retail properties businesses, as well as multi-purpose development projects, one of its key strengths.
Overview of Foshan Lingnan Tiandi
||Chancheng District, Foshan, Guangdong Province, China
||Direct access from the Zumiao Station and the Pujun Beilu Station on the Guangzhou Metro Line 1
||Approx. 650,000 m2 of land; approx. 1,550,000 m2 of total building floor area
||Residential homes/offices/retail properties/hotels/etc.
Schedule: Entire project planned for completion sometime around 2020
About the Shui On Group
Established by Mr. Vincent Lo in 1971, the Shui On Group currently has two group companies listed on the Hong Kong Stock Exchange. In 1985, the Shui On Group began property development, construction and construction materials businesses in mainland China. The development of Xintiandi in Shanghai in the 1990s quickly boosted the Shui On Group into becoming a top-name brand. The group’s core business development areas encompass the major cities of Shanghai, Dalian, 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 and others).
Overview of Lot 18 Project
Overview of Construction
||Approx. 24,600 m2 (approx. 7,440 tsubo)
|Total floor space
||Approx. 108,000 m2 (approx. 3,270 tsubo)
|Number of condominium units
||Housing, retail properties, kindergarten, club house, tennis court, outdoor swimming pool, etc.
|Start of construction
|Start of sales
||Spring of 20152015
Arrow points to planned site of project.