HYSAN Development is withdrawing from the controversial Oriental Plaza development in Beijing because it was 'too large' for the group to fund, the company says. The group has been a low-profile member of the consortium developing the prime site near the heart of Beijing, which hit double trouble over eviction of fast-food chain McDonald's and criticism that its towers would overshadow some of the capital city's most famous landmarks. The company said: 'During the year, the group withdrew from the Oriental Plaza development in Beijing due to the significant increase in the size of the project from the original planned gross floor area of 700,000 square feet to more than nine million sq ft. 'This was considered too large for a single project to be committed by the group'. Hysan owned 26 per cent of the original project, also known under the name Orient Plaza. Ironically, the development had since shrunk as new plans had been submitted to the authorities following the controversy. Hysan's initial investment of $60 million had been refunded. Separately, the annual report of Orient Overseas (International) (OOIL) issued this week states that Orient Plaza will be six million sq ft development and cost about US$1.3 billion, of which OOIL's share will be US$299 million, but it may exercise a right to limit its investment to US$270 million. The report says OOIL's share is 23 per cent and its investment so far has already reached US$51.3 million. It adds the principle shareholder and project manager is a subsidiary of Cheung Kong (Holdings) which owns 64 per cent. This implies Cheung Kong's share of expenses will be US$832 million and that Cheung Kong has already spent US$142 million.
