Shanghai Real Estate expects to generate an average annual return of 40 per cent from a massive site clearance project in Shanghai's northern Baoshan district.
Chairman and president Shi Jian yesterday said the company was paying 248.1 million yuan (about HK$232.91 million) for a 45.26 per cent stake in the project which involved a total investment of 548.1 million yuan.
The balance of interest is being equally shared by two state-owned companies - Luodian Asset Management and Investment Company and Hero Group Joint Stock Company.
The project will clear 6.8 million square metres of agricultural land in the Luodian district in Baoshan by 2011, paving the way for a huge residential and hotel development.
It will include a residential district with villas, terraced houses and apartments with different themes, a five-star hotel and a 3.4 million-square metre ecological garden with golf course.
Works for the clearance and levelling of land could commence in May, followed by land formation, town planning and the provision of infrastructure, Mr Shi said.