Henderson plans 63b yuan outlay

PUBLISHED : Tuesday, 27 May, 2008, 12:00am
UPDATED : Tuesday, 27 May, 2008, 12:00am

Henderson Land Development, controlled by Lee Shau-kee, plans to invest 63 billion yuan (HK$70.88 billion) in its mainland projects over the next five to six years.

The developer would add gross floor area totalling 130 million square feet, including 20 million sq ft in key cities and 110 million sq ft in 17 projects in nine fast-growing cities, executive director John Yip Ying-chee said yesterday at a groundbreaking ceremony for the Shenyang International Finance Centre.

The cities are Changsha, Chengdu, Chongqing, Nanjing, Shenyang, Suzhou, Xian, Xuzhou and Yixing.

The capital expenditure for projects in major cities, including the Beijing IFC and four commercial projects in Shanghai's Huangpu and Zhabei districts, would amount to 11 billion yuan, Mr Yip (above) said.

It also earmarked 52 billion yuan for the projects in the fast-growing cities, including 22 billion yuan for three residential and commercial projects in Shenyang, the capital city of Liaoning province.

Mr Yip said Henderson was attracted by Shenyang's buoyant economy, and the company planned to make the largest investment in the city after the major cities.

The 10 billion yuan Shenyang IFC is Henderson's first project in the city. It is set to be the tallest building in northeastern China with 89 floors and a total gross floor area of 5.7 million sq ft when completed in 2012. The preliminary investment yield was estimated at more than 12 per cent, Mr Yip said.

Henderson also has a residential project and a luxury commercial-residential project in Shenyang that would generate 13 million sq ft each.

Mr Yip said projects in major cities would be held for long-term investment because replenishing its land bank was difficult, while the homes it developed in fast-growing cities would be for sale. He said Henderson would continue to look for acquisition opportunities in the surrounding areas of its existing sites.