GUANGZHOU Shipyard International plans to take a majority stake in a property project in southern China, marking the Chinese shipbuilder's maiden foray into the real estate market.
The company will take a 60 to 70 per cent stake in the development located between Dongguan and Xintang with an investment of more than 100 million yuan (about HK$89 million).
Its chairman Ren Fuwei said the board had already ratified the property venture and details should be finalised with two mainland developers by next month.
''It's not our intention to place too many resources into property development,'' said Mr Ren, who allayed concern over the move from from its core shipbuilding and container manufacturing business.
He said the property project would provide the company with a more lucrative profit margin and a steady source of income in the long run.
The project, which would be completed in two years, would be low risk, he said. A commercial complex would be built on a 10,000-square-metre site,with a car park, a pier, a retail and entertainment plaza, a hotel and two office buildings.