Tysan plans to invest HK$1b in Shenyang development

PUBLISHED : Friday, 15 February, 2008, 12:00am
UPDATED : Friday, 15 February, 2008, 12:00am

Tysan Holdings will invest HK$1 billion in phases to develop a 41,340 square metre site in Shenyang into a multiple-usage complex, said executive director Jennifer Kwok.

The company paid 307.8 million yuan in December for the land in Huanggu district in the provincial capital of Liaoning.

It plans to use about 60 per cent of the site for housing and the remainder for commercial occupancy. Construction is scheduled to start in July, after the company takes possession of the land.

In Tianjin, Tysan's 90 per cent owned mid-range to high-end residential project, the Riverside, will be ready for launch within the year.

With a saleable area of 75,000 square metres, the Riverside may fetch more than 10,000 yuan per square metre, Ms Kwok estimated, higher than the average selling price of between 7,000 yuan and 8,000 yuan for similar projects in the district.

Meanwhile, Tysan has sold about 50 per cent of the Waterfront - a mid-range to high-end residential project it launched in June - allowing part of the proceeds to be booked as revenue for the year to March. The Shanghai project fetched an average of 15,000 yuan per square metre. The Waterfront comprises nine towers of 993 units with a total area of about 147,000 square metres.

Ms Kwok said Tysan would continue to expand its land bank as property development would be the company's earnings driver on the mainland. Nevertheless, foundation piling in Hong Kong and Macau will remain the core business.

Tysan's other businesses comprise electrical and mechanical engineering, building construction, machinery leasing and trading, as well as property investment and management.

For the six months to last September, foundation piling revenue totalled HK$749.14 million and accounted for 76.3 per cent of turnover. The segment contributed an operating profit of HK$59.34 million, up 65 per cent year on year.