[photopress:North_Bund_development_area.jpg,full,alignright]Hong Kong Construction (a splendidly anonymous name) has issued new shares worth $72 million to raise its stake in a RMB6 billion ($770 million) property development in Shanghai’s North Bund area.
The proceeds will be used to fund the purchase of an additional 15% stake in a project firm that will handle development of a site in Hongkou District from its joint-venture partner, Sinar Mas Paper.
Hong Kong Construction previously held 10 percent while Sinar Mas held the balance in Shanghai Jingang North Bund Real Estate Company, a joint venture established after the two firms jointly won the site in a public tender for RMB3.53 billion last January.
What is slightly odd is that Hong Kong Construction and Sinar Mas are both controlled by Indonesian-Chinese tycoon Oei Tjie Goan. Together the two companies plan to build a mixed-use development including offices, hotels and other commercial facilities on the 56,670 square-meter site bounded by Xinjian, Dongdaming, Lushun and Dongchangzhi roads.
The company expects to start construction in the middle of this year after it completes project design. Construction is due to be completed by 2010. The site, with a planned floor area up to 250,000 square meters, is near the city’s future international cruise terminal on the north bank of the Huangpu River. The project’s underground space will be connected to a cross-river tunnel and a subway station, both of which are in the government’s urban planning blueprint.
Source: Shanghai Daily