Beijing Capital in 900m yuan Olympics venture

Beijing Capital Land, one of the biggest developers in the capital, has teamed up with another Beijing-based property developer, Super Shine, to form a 900 million yuan joint venture to develop a property project in the Olympic Centre.

It would fund 70 per cent of the registered capital of the venture from internal resources while the remaining 30 per cent would be paid by the Shenzhen-listed Super Shine, Beijing Capital said in an announcement last night.

The property project, Morgan Centre, will be developed for residential and commercial purposes and is expected to be completed by the end of next year.

Morgan Centre is situated in Chaoyang district of Beijing, about 500 metres from the main gymnasium of the Beijing Olympic Games, and is also close to the swimming stadium for the games.

The project's gross floor area will be 272,800 square metres, of which 105,000 square metres has been earmarked for residential use, 53,000 square metres for commercial purposes and 32,000 square metres for office use. The joint venture will be responsible for the development, sale, lease and the related property management service of the property.

Beijing Capital's president Tang Jun said the project was not only in line with the company's development strategies but also would help it tap the huge business potential from the 2008 Olympics.

Despite the central government's latest measures to cool the property market, housing prices in Beijing jumped about 15 per cent in the first quarter.

Beijing Capital earlier said it expected its sales to double to five billion yuan this year as it accelerated project launches to compensate for falling earnings last year. Its profit dropped 19 per cent to 211.51 million yuan last year amid government curbs in the sector.

Following a general rebound in mainland property stocks, shares in Beijing Capital jumped 4.21 per cent to $2.475 yesterday. The stock has slumped almost 40 per cent since it touched a record high of $4.112 on April 3.