Shenzhen scheme meets delay
China Overseas Land & Investment is facing delays to its proposed residential project in Shenzhen's Honglin industrial zone.
The news follows the Shenzhen government's decision to shift development efforts to the Futian Centre economic zone.
China Overseas had planned to start work on the 400 million yuan (about $371.4 million) development this year but now might have to wait until next year, vice-chairman Yao Peifu said.
Shenzhen cited limited financial and human resources for its decision to concentrate on development of Futian Centre, Mr Yao said.
China Overseas in April announced it had signed a letter of intent to build a residential project of at least 800,000 square feet in Honglin.
Negotiations between China Overseas and the city authorities were continuing and the letter of intent was still valid, Mr Yao said.
However, Mr Yao said Futian Centre had bumped Honglin off the priority list.
Futian Centre, covering more than five square kilometres, has been designated by the municipality as both a business and residential district.
When complete, it will contain about 107 million sq ft of home and business space.
China Overseas also has an interest in the development of Futian Centre. It recently signed a preliminary agreement with Shenzhen municipality to develop a residential project on a site of about 540,000 sq ft in the area.
The investment is expected to be between $900 million and $1 billion.
Sun Hung Kai Properties has expressed interest in taking a 30 per cent stake in the project.
Mr Yao said Sun Hung Kai was still interested in the project even though the development plans were in limbo.
The municipal government had yet to determine the land usage and planning framework for Futian Centre, he said.
