Minsheng fund goes all out in bid for pricey Shanghai site

The newly launched China Minsheng Investment Corp, the mainland's largest private investment fund, plans to bid for a prime plot of land on Shanghai's Bund that could fetch a record 30 billion yuan (HK$37.7 billion).

If the fund secures the 200,000 square metre parcel of land on the west bank of the Huangpu River, it will develop a mixed-use commercial complex with a total gross floor area of about 700,000 square metres.

Minsheng Investment will be competing against established Hong Kong developer Wharf in bidding for the land, viewed as the most valuable in Shanghai.

According to sources with inside knowledge of the fund, it is making an all-out effort to take part in bidding despite its lack of land development experience.

Authorities began accepting bids for the land last Wednesday.

"Minsheng Investment is by all means a top candidate for developing the area," said Lu Qilin, a research head with Shanghai Deovolente Realty. "But it has a drawback because it has little experience in property development."

Since the project requires a huge capital base and the local authorities set strict criteria for the bidders, only cash-rich investors will be able to bid. For example, bidders are required to pay a deposit of five billion yuan.