Henderson targets HK$3b Changsha residential project
Henderson Land Development, Hong Kong's third-largest developer by market value, plans to invest HK$3 billion to develop a residential project in Changsha, Hunan province, according to executive director John Yip Ying-chee.
Mr Yip said the project, which is on a 533,600 square metre site, will consist mainly of residential buildings and auxiliary commercial facilities.
'We are going to complete the investment and construction in different phases within five to six years,' he said.
Mr Yip expects the first phase to be finished in the first half of 2008. He refused to reveal the expected return on investment.
Henderson Land also plans to invest in several other residential projects in Changsha, most of which are near the central area, Mr Yip said.
The sizes of those investments have not been decided yet, he added.
'Changsha is the key city for Henderson Land's development in central China,' Mr Yip said.
Henderson Land's move comes after massive investments in the capital of Hunan province in central China by other Hong Kong developers and foreign funds, namely Hang Lung Properties, New World China, Hutchison Whampoa and ING Real Estate.
Mainland developer China Resources Land also said yesterday it had paid 410 million yuan for a site in Xingsha town of Changsha County, one of the four counties in the city.
The site is next to the Changsha Economic and Technical Development Zone and will be developed into a residential project, China Resources Land said.
Construction of the project will start early next year and is expected to be completed in several phases over 10 years, a company spokesman said.
He said demand for residential properties is expected to grow because many large corporates have already moved into the zone. Prices of middle- and high-end residential developments in Changsha city range from 3,000 yuan to 3,500 yuan per square metre.
China Resources Land expects its project to be priced at 2,000 yuan to 3,000 yuan per square metre for high-density residential buildings, and more than 3,000 yuan per square metre for low-density ones, the spokesman said.
