Disgraced tycoon's prime land in Shanghai taken off the market

Despite several offers by developers, the city government will turn the area into a green space of parks and sports facilities

A prime plot of land owned by disgraced property businessman Chau Ching-ngai has been taken off the Shanghai property market by the city government, despite several offers by developers.

A planning official said the city had decided to relocate residents and turn the area into a green space, which will include parks and sports facilities.

The decision removes from the market one of the most desirable plots in the city: 176,400 square metres in a prime location in the Jing An district, between Beijing Road and Suzhou Creek, which has remained untouched since Chau was detained last May.

On August 29 last year, the Jing An district issued an order cancelling the sale of 75 per cent of the land on the site to a subsidiary of Nongkai, Chau's flagship firm, because it had not received the required fee of 85.4 million yuan within a stipulated period.

Nongkai retains the remaining 25 per cent but has large liabilities, in particular to the Bank of Shanghai. Nongkai and the bank declined to comment on who now owned the remaining 25 per cent of the land.

Chau acquired the site in May 1999 in an agreement with the district government. The property is referred to as dong ba kuai, which means the eight pieces of land at the eastern side of the Jing An district. It housed more than 10,000 households.