Kowloon Development enters mainland and expects 10b yuan at project's end Mid-sized developed Kowloon Development will buy a residential and commercial property in Shenyang for 830 million yuan, marking its entry into the mainland. Listed Kowloon Development, which recently ran into difficulty while buying a state-owned Shenzhen developer, said yesterday it won a tender for a 1.45 million square metre property in Dong Ning in Shenyang, Liaoning province, offered by the municipal government. Kowloon Development chairman Johnny Or Wai-sheun yesterday said that 90 per cent of the project area would be for residential development and the rest for commercial use. Mr Or added that the agreed plot ratio of two would enable the project to include green space and a recreational area. 'Properties in Shenyang are fetching between 4,000 yuan and 5,000 yuan per square metre. With about 2.9 million square metres of developable area, we expect the project to generate more than 10 billion yuan,' he said. He said the project would be developed in phases and could be finished in 2012. The project would be funded through internal resources. Mr Or said the project investment would be about six billion yuan with building costs at about 1,500 yuan per square metre. The company intended to develop the site on its own and had no plans to form a mainland joint-venture at this moment, he added. Meanwhile, Kowloon Development executive director Dickson Lai Ka-fai yesterday said the company had asked the China Securities Regulatory Commission about the suspension of its 560 million yuan acquisition of 70 per cent of Shanghai-listed Shenzhen Properties & Resources Development. Kowloon Development last month reported to the Hong Kong exchange that the China securities watchdog had demanded verification of the acquisition by the State-owned Assets Supervision and Administration Commission. Mr Lai said the proof was related to legal, not financial matters. 'We followed all the necessary procedures in the acquisition. We are awaiting a response from them,' Mr Or said. He said once the company obtained state approval, it would begin restructuring Shenzhen Properties into a private enterprise. He said Kowloon Development would inject capital and land into the firm which has about 240,000 square metres of land.