[photopress:property_Zhang_Yin_and_Pan_Shiyi.jpg,full,alignright]SOHO China, a leading property developer, is acquiring a large-scale development site in one of Beijing’s most prosperous business areas. The Beijing-based property developer bought a 485,000-sq m site on prime second ring road for RMB5.5 billion ($792.59 million). It is the second-largest project the company has ever had.
Pan Shiyi, chairman of SOHO China (seen here with CEO Zhang Xin and they are, as you will have guessed, a husband and wife team), said, ‘It is a great opportunity for us, thanks to our financial discipline which gives us strong balance sheet. We were the only bidder for the site, and 5.5 billion yuan is not a small sum for most developers in the country.’
As it happens it is not a small sum for developers outside the country, either
The site, which has been renamed Chaoyangmen SOHO, is former Kaiheng Center, one of the largest commercial tracts in downtown Beijing. It is located at the junction of two subway lines, making it highly-accessible.
Of the total RMB5.5 billion, about RMB2.2 billion is ‘equity consideration’ from the company and the rest of the RMB3.3 billion is bank loan, Pan Shiyi told reporters.
About 15% of the total project will be designed for residential buildings, with an average price of RMB50,000 per square meter. 34% will be allocated for office and 20% for shopping malls.
Pan Shiyi said he was confident that buyers would be attracted to the buildings considering the golden location.
‘There is an open secret for successful property developers, which is also our business strategy. The utmost importance for any project is location, location and location.’
The project is divided into three phases. The 110,000-sq m first phase will be ready for the market next year, with the rest scheduled to be completed by 2011.
Some 53,000 sq m from the first phase has been sold to Bank of China’s Beijing branch.
Source: China Daily