Cheung Kong (Holdings) and Hutchison Whampoa jointly acquired a residential and commercial site in Chongqing, in western China, for 2.45 billion yuan. The two companies yesterday announced they had won the bidding for a one million square metre site in Chongqing. They will each hold a 47.5 per cent stake in the project. The site, at Sigongli in Nanan district near the Chongqing Economic and Technological Development Zone, can be developed into commercial and residential properties with a gross floor area of three million sqmetres. The firms expect the investment cost to reach 4.54 billion yuan. Ricky Wong, general manager of DTZ Debenham Tie Leung, said the average price of residential projects in the area was 3,800 yuan per square metre, as most of them are mass residential projects. However, he said the site could be developed into a middle-class residential project with a shopping arcade, as many new projects were springing up in the area and targeting middle-income buyers. Hutchison Whampoa and Cheung Kong are long-time investors in the Chongqing property market. However, not all of their projects are going smoothly. Their first is Beverly Hills in Yubei district, which was launched in 2003. The project, completed in 2005 and providing 217 villas, is about 60 per cent sold. But at least 30 owners early this year sought compensation from the developers for the allegedly poor quality of their properties. The developers planned to launch the Cape Coral luxury residential project at the waterfront of Nanan district this year. Property agents said the asking price for Cape Coral reached 8,000 yuan per square metre. The project provides flats, townhouses and lofts. Hutchison and Cheung Kong have aggressively pushed into the mainland market in the past 10 years with projects in Beijing, Shanghai, Chongqing, Chengdu, Tianjin, Changchun, Xian, Qingdao, Wuhan, Changsha, Guangzhou, Shenzhen, Dongguan and Zhuhai.