Walter Kwok-invested fund buys site in Nanjing for model city

PUBLISHED : Friday, 04 March, 2011, 12:00am
UPDATED : Friday, 04 March, 2011, 12:00am

A US$10 billion real estate fund set up by Shimao Group, Taiwan's Farglory Group and former Sun Hung Kai Properties chairman Walter Kwok Ping-sheung, has bought a huge site in Nanjing for 4.472 billion yuan (HK$5.3 billion).

In its first acquisition since its formation in April last year, the fund, known as Straits Construction Investment (Holdings), said it had bought a site in Nanjing Hexi New City, covering 341,000 square metres and with a potential developable gross floor area of about 940,000 sq metres.

The project will be named Nanjing Straits City and is planned to be a model city for the economic integration of the mainland and Taiwan.

It will encourage low-carbon use and, ecological, energy-saving and environment-friendly lifestyles.

According to the fund, the project would make use of cloud computing technology. Cloud computing uses the internet and remote servers to hold data and applications. It allows consumers and businesses to use applications without having to install them on their own computers and to access their personal files online.

Straits Construction Investment was established by a number of big enterprises and financial institutions from Hong Kong, Taiwan and the mainland. They include Shimao, Taiwan's Farglory Group and Teco Group, Hong Kong's Henderson Land Development and Walter Kwok.

Kwok, who has invested about US$100 million in the fund, said he was glad to see it complete its first acquisition in Nanjing. The fund would acquire more sites, he said.

The investment in Strait Construction is one of Kwok's major personal investments after he was removed as a beneficiary from a key trust controlling Sun Hung Kai Properties last October.

Kwok also teamed up with Cheung Kong (Holdings) to develop a residential project in Argyle Street in Ho Man Tin.

In the high-profile battle over one of the world's most valuable property empires, Kwok had said that he had been offered HK$20 billion to settle a dispute over ownership of the family's assets. But he rejected the offer, saying he reckoned the assets should be worth more.