[photopress:jiangwan.jpg,full,alignright]The idea is that regulations are now in place to stop overseas interests acquiring land and property in China.
In Shanghai, Hines Interests Limited Partnership of the United States has confirmed it has acquired 251,776 square meters of land in Jiangwan (the illustration IS Jiangwan but it is NOT the new development) for two residential buildings and another two mixed-use projects.
Hines is undertaking the development with a local company, Shanghai Chengtou, and is reported to have an at least 50 percent stake in the RMB1.71-billion ($214 million) development on the C-5 site in the city’s New Jiangwan Town.
The government launched a package of new rules in July, requiring overseas real-estate developers to have at least 50 percent of the registered capital for any project worth more than $10 million.
This measure and other regulations designed to cool the region’s property market seem to be having little effect with housing prices rising 5.5 percent in 70 cities in the third quarter of 2006, according to the National Development and Reform Commission (NDRC).
A spokesman told China Daily that Hines’ contract was delayed until last month not only because of July’s curb on foreign investment in the property market, but more importantly because of ‘negotiations on the division of stock within the partnership.’
Hines entered China’s property market in 1996 and has focused on Beijing and Shanghai with three projects running in each city at present.
Source: China Daily