Japanese firms in China venture
TWO Japanese companies, Mitsubishi and Daiwa, have announced plans to build and then run a new housing complex for foreigners in Tianjin, China, spokesmen said.
'The demand for such housing is very high because there are currently about a 1,000 foreign workers living in the area, including some 600 Japanese,' said Graham Prince, a spokesman for Mitsubishi.
'These people are living in renovated hotels and would very much like to have a comfortable apartment instead,' Mr Prince said, adding his company was involved in a similar project in Dalian, in northeastern China, last year.
The joint venture's construction costs will be equally split with Daiwa, he explained.
Daiwa House Industry Co and Mitsubishi Corp will each provide 45 per cent of the project's cost in the historic city near Beijing and will finish the 86-apartment complex by December 1996.
Joining with a Chinese company that will put up the remaining 10 per cent of the capital, the partners will establish Tianjin Jiuhe International Villa Co, the spokesmen said.
Capitalised at US$6 million, the new company will open its doors in early December and construction will start in mid-January based on a three-way, $20 million contract running until the year 2017.
Featuring 174,312 square feet near the centre of the city, the huge complex will have swimming pools, tennis courts and restaurants.
The project is only one of a spate of new Sino-Japanese business deals.