THE Bank of China and the Industrial and Commercial Bank of China have been appointed lead banks for the US$300 million Dongan Market redevelopment project, currently Beijing's biggest retail and commercial joint venture investment. Beijing New Dongan Co vice managing director Yu Rong said the development loan was composed of two equal parts. The foreign partner, Hong Kong's Sun Hung Kai Properties, was responsible for its half and the other half would be repaid by the mainland partner, Dongan Group. Both partners have agreed to inject a small amount of working capital into the project. The foreign loan and local loan were arranged by the Bank of China and the Industrial and Commercial Bank of China respectively, he said. Financing arrangements, which will be concluded shortly, follow final approval of the project in January. According to the feasibility study, the project would have a pay-back period of six years starting on completion of the complex in late 1996. After occupation, the project should have an initial income of 400 million yuan (about HK$355 million) to 500 million yuan per year. It will be Beijing's largest retail attraction complex with a total retail area of more than 80,000 square metres. The complex will be situated on a site of more than 20,000 sq m, on Beijing's main shopping thoroughfare, Wang Fu Jin Street. Aside from the 80,000 sq m of retail space, a further 130,000 sq m would be set aside for office space, service apartments and food and beverage outlets. The whole complex will be reserved for rental purposes. Mr Yu said the joint venture company would operate the two department stores and a significant number of outlets. The Dongan Group would be interested in forming more joint ventures with Sun Hung Kai Properties. either within or outside China after the present project came to maturity.
