[photopress:xurungmao.jpg,full,alignright]Developer Shimao International has said it may withdraw from Shanghai’s biggest overseas real estate project in Russia’s St Petersburg. Shimao is owned by China’s second-richest man, Xu Rongmao.
The Hong Kong-listed company, an overseas investment arm under Shanghai-based developer Shimao Group, said in a statement that its agreements to acquire a 33.34% stake in the Russia project firm have lapsed. It has not ‘obtained necessary consents and approvals from the relevant governmental and regulatory authorities.’
Shimao International signed agreements with Shanghai Overseas United Investment Company and Shanghai Industrial Investment last April to become the biggest shareholder in Zao Baltic Pearl, the project firm, for RMB232 million ($30 million).
The Baltic Pearl project, clinched during the visit of St Petersburg Mayor Valentina Matviyenko to Shanghai in 2004, is to build a complex comprising residences, hotels, offices, shopping facilities, and health and convention centers on a 1.64-million-square-meter plot of land. The total cost for the St Petersburg project is expected to be about $1.3 billion.
Source: Shanghai Daily