Coastal to pump $2b into China
Coastal Realty Development, controlled by chairman Chan Boon Teong, plans to commit $2 billion to developing six residential and office projects in China.
Mr Chan, who is director of Sing Tao Holdings and Huey Tai International, said a residential and commercial project in Anshan, Liaoning province, with an initial investment of up to 250 million yuan (about HK$233 million), was on the drawing board.
He said the company was to develop a residential and commercial project, Lujiang New City - similar to Hong Kong's Taikoo Shing - in Xiamen.
Other proposed developments included a 50-storey office building in Fuzhou, a luxury residential and commercial project, Golden Bridge Garden, in Shanghai, and a residential-commercial project in Shenzhen.
'All these projects are wholly owned by the company, thanks to our well-established relationship in China,' he said. 'Our company emphasises developing residential projects for domestic buyers.
'We believe there are more than 30 million affluent people who can afford to buy properties better than the low-cost government housing.' The company also has a 50 per cent stake in a residential project in Qingdao.
It has invested $600 million in the six projects and it is expected to pump in a further $1.4 billion over the next five years.
Coastal Realty has an asset value of $5 billion and has sold 2.5 million sq ft of property since it was established in 1990.
It is believed to be planning a Hong Kong listing.
Mr Chan said the company was to turn a 2.9 million sq ft site in the steel-making city of Anshan into a 6.6 million sq ft self-sufficient town over the next 10 years.
The first phase would generate one million sq ft of gross floor area comprising 800 homes and 200,000 sq ft of commercial space.
He said completion was expected in 1999, while the development of the remaining site area depended on market demand.