Shui On Group has signed a preliminary agreement with mainland developer Yida Group for joint development of the 15 billion yuan phase two of the Dalian Software Park.
Under the deal, Shui On Land, Shui On Construction and Materials and Shui On Private Group will own 70 per cent of the Dalian project while Yida will have the rest.
The total investment cost including land, construction and other expenses would be 15 billion yuan, the developers said.
Yida is the developer of the largely completed phase one of the Dalian Software Park.
Phase two will have a gross floor area of about four million square metres, which will be developed into a software and information service centre housing modern enterprises, research and development centres, as well as commercial and residential projects.
The projects will be developed in several phases and focus on providing services to the Japanese, South Korean and mainland markets.
A Shui On spokesman said details of the project were not available at the preliminary stage.
DTZ Debenham Tie Leung (Dalian) estimated 50 per cent of the floor area of phase one would be for commercial and residential facilities and the rest for the software and information services centre. It expected the occupancy rate of phase one to be more than 95 per cent.
Property agents said rents at the services centre ranged from two yuan to five yuan per square metre. The average price of the residential units is 9,000 yuan per square metre.
'Phase one of the Dalian Software Park has attracted many multinational firms such as Sony, IBM and Dell to open backroom offices there. The demand for the software park in Dalian is strong,' DTZ Debenham Tie Leung (Dalian) managing director Joe Zou said.