Hanny Holdings will shift its focus to mainland commercial property development because of the strong demand for high-end commercial property there.
Hanny invests in a wide range of industries. About 20 per cent of its revenue in the six months to September last year came from the business of water supply for industrial use.
'We will [now] focus on commercial projects in the city centre of Guangzhou and the nearby cities. If there are attractive projects, we may expand to other mainland cities later,' executive director Edmond Heung Pik-lun said.
'We have seen a sharp increase in second-generation rich and middle-class customers in recent years [on the mainland]. They are interested in mid to high-end retail properties but they don't have a lot to choose from. The market has a lot of potential. We will hold retail properties on the mainland for long-term investment.'
Jixiang Building in Guangzhou will be Hanny's first project. It will invest 540 million yuan (HK$641.68 million) to build a 36-storey building on top of a five-storey basement. Jixiang Building will consist of a shopping centre and 827 serviced apartments. The gross floor area will be about 122,733 square metres.
Hanny will start selling the apartments in the fourth quarter of this year, while the leasing of the shopping centre, which targets the wealthy young, has already begun. The project is scheduled to be completed by the end of next year.