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Intime invests 1b yuan in Hangzhou real estate

Intime Department Store (Group), which operates the largest department store chain in Zhejiang, has won a bid for a 50 per cent interest in a property redevelopment project in Hangzhou for 1.05 billion yuan.

The project covers two parcels of land in Hubin district and has a total gross floor area of 67,446 square metres. It is undergoing redevelopment into commercial and tourist attractions.

The deal, the group's second purchase of real estate projects in the province in less than two months, would allow the retailer to add to a series of medium to high-end retail properties in the affluent Yangtze River Delta region.

In what Intime described as 'strategic new additions' to its department store operations, the projects will lift its profile in scenic and affluent Hangzhou.

However, some analysts pointed out the growing risks in Hangzhou and other cities in Zhejiang given the country's macroeconomic measures to combat soaring prices.

Intime said yesterday that 749.29 million yuan was spent on Hubin International, a completed project with a gross floor area of 23,653 squaremetres with lot numbers 17 and 24 in Hubin District.

The consideration includes the payment of 224.45 million yuan for a 50 per cent stake in the project and 524.83 million yuan, or half of a loan for construction.

The other parcel of land costs 301.54 million yuan, in which Intime has a 50 per cent stake.

It has a gross floor area of 43,794 squaremetres at lots 19, 22 and 25 in Hubin District, with redevelopment due in 2009.

Last month, the group paid a combined 240 million yuan for a 60 per cent stake in two retail properties in Jiaxing's prime commercial district with a total gross floor area of about 60,000 squaremetres which will be developed as shops.

Intime shares climbed 4.78 per cent, or 41 HK cents, to HK$8.99 on Friday.

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