THE Guangzhou Municipal Government has invited New World Development to take part in its giant Pearl River New City property development because its existing investors, including Peregrine International and Kwong Sang Hong International, are thinking of dropping out.
A consortium formed by Peregrine, its listed affiliate Kwong Sang Hong and Asean Resources Holdings, Huey Tai International, Paul Y - ITC Construction Holdings and other investors was signed up as joint-venture partners with the city government 18 months ago.
But concern over the uncertain property market in China has caused it to delay committing the bulk of its investment.
The city government is now looking for new partners so the $3.8 billion development can proceed.
New World Development (China) executive director Douglas Chan said Guangzhou had invited the company to invest in the project.
'Talks are still in a very preliminary stage,' Mr Chan said, and the company had not decided whether or not to commit to the development.
