Li Ka-shing's Beijing plaza has US$2b tag

Li Ka-shing's flagship companies Cheung Kong (Holdings) and Hutchison Whampoa yesterday unveiled details of their involvement in the controversial Beijing Oriental Plaza development as it was launched on the property market.

As part of a consortium, the two companies made their first disclosure of the details of shareholdings and investment in the project - a shopping, serviced apartment, hotel and office complex on a prime site in Beijing's central Changan Avenue.

The consortium said it planned to invest US$2 billion in the 8.7 million square foot complex, which will become the largest civil property development project in Asia.

The first phase of the project is expected to be completed by October 1, coinciding with the celebration of the 50th anniversary of the founding of the People's Republic of China.

Cheung Kong and Hutchison said together they held a 52 per cent stake in the development, down from their original holdings of more than 60 per cent.

Two mainland-backed companies - Bank of China Group Investment and the China Insurance Group Investment - have become shareholders in the consortium, each holding a 20 per cent stake.

Orient Overseas (International), owned by the family of SAR Chief Executive Tung Chee-hwa, owns 8 per cent from an original 23 per cent, after a shareholding realignment and the introduction of new shareholders.