Mission Hills plans to add $1b complex
Project includes hotel, shops and small apartments to attract more non-golfers
Shenzhen's Mission Hills, the world's largest golf facility, plans to add a $1 billion, 1.61 million square foot retail, entertainment and hotel complex to its mix of apartments, villas, tennis courts and 10 golf links, says group vice-chairman Ken Chu.
The project will boast 645,800 sq ft of retail space, a 300-room hotel, a cinema and a spa that can accommodate up to 100 customers at a time.
In line with new Shenzhen government regulations mandating that at least 70 per cent of flats in new projects be no larger than 90 square metres, Mr Chu said: 'We will also build a lot of small apartments as most of the owners will just use them for a short-term golfing stay.
'The project will help attract more non-golfers to our resort.'
Over the past decade, the developer has sold 500 flats measuring 85 square metres.
Mr Chu dismissed market speculation that the Mission Hills Group would launch an initial public offering on the Hong Kong stock exchange to raise funds to finance the expansion, saying the new construction would be financed through property sales and internal cash flow.
Mission Hills is controlled by the Chu family who originally came from Hong Kong.
The development, on which construction is due to begin next year, is set for completion in 2008.
Mission Hills has proved popular with Hong Kong golfers and investors, although some analysts warned that a big increase in density resulting from the construction of smaller flats might deter some buyers.
Those buyers who could afford pricey golf memberships preferred a quieter, more private environment, one property agent said.
The latest project will boast 645,800 sq ft of retail space
There will be a 300-room hotel, a cinema, a spa and small flats
The development is set for completion in 2008