PALIBURG International Holdings has joined forces with private firm Phlox International to form a joint venture company which is going after property projects in China worth up to $30 billion. The new company, Century Phlox Holdings, is 70 per cent owned by Paliburg and 30 per cent by Phlox, with an initial capital of $100 million. Paliburg chairman Lo Yuk-sui said more than 20 projects were in progress or being pursued by Century Phlox, involving a total site area of about 200 million sq ft and a potential floor area of more than 150 million sq ft. He said the projects would involve a total investment of between $26 billion and $30 billion, spread over five to 10 years. Century Phlox would adopt a flexible approach to financing, through borrowings or ''semi-equity'' methods, for investment in the projects, he added. Mr Lo did not rule out the possibility of bringing in other companies as shareholders in the projects, but stressed that Paliburg had no plan for a cash call in the foreseeable future despite a series of property ventures in China. Paliburg has aggressively developed a land bank in China in the past two years, through its 70 per cent owned subsidiary Chinatrend (Holdings). Mr Lo said there would not be conflicts between Chinatrend and Century Phlox in seeking property investment opportunities in China. Rather, he said the two companies could possibly co-operate in future to jointly pursue and develop projects. Chinatrend has secured property projects in Tianjin, Shandong and Fujian, with a potential floor area of about three million sq ft. Six projects have already been secured by Century Phlox: two comprehensive developments in Dongguan, two projects in Huizhou, a mixed development in Zhanghiagang, and a hotel/ commercial project in Shantou. Mr Lo estimated that the six projects, with a potential floor area of more than 43 million sq ft, would involve a total investment of about $7.4 billion. Letters of intent had been signed for eight projects in Guangzhou, Shantou, Dongguan, Beijing, Shandong and Shenyang involving a potential floor area of about 92 million sq ft, he said. The biggest project is a residential/resort/industrial development on a 10 sq km site in Shandong, which is expected to cost more than $5 billion for development. Eight more projects in Guangzhou, Shanghai, Xiamen, Shantou, Wuhan, Hainan and Shenyang are being finalised by Century Phlox. ''We are aiming at making Century Phlox a sizeable, quality company specialising in the development and management of property projects in China,'' said Mr Lo. ''We will endeavour to introduce property developments with international standards to China by providing services including architectural and engineering design, construction, construction management, estate management and property marketing.'' Mr Lo said his group would play a role in the aspects of financial arrangement and the bringing in of foreign funds for the projects. Phlox, founded by chairman Addi Lee, is a locally owned group heavily engaged in property business in China with more than 20 mainland offices. Mr Lee was among the first batch of overseas businessmen investing in mainland property since 1979. Phlox has participated in more than 30 projects in China.
