Hong Kong developer New World Development’s China unit will invest US$732 million in Guangzhou urban renewal project
- The project in Guangzhou’s Haizhu district will be NWC’s largest such undertaking in China
- Developers are keen on urban renewal projects as land supply is limited in city centres, analyst says
The project, which is expected to require an investment of HK$5.7 billion (US$732.3 million), will be NWC’s largest such undertaking in China. It will yield a total gross floor area of 7 million sq ft, or about around 650,000 square metres, the company said on Wednesday.
NWC will develop the project with the village of Lianxing in Guangzhou’s Haizhu district. The parties are expected to sign a cooperation framework agreement next month.
“Many urban regeneration projects in mainland China are developed through the public-private cooperation model,” said Martin Wong, head of research and consultancy in Greater China at Knight Frank. “China has imposed a series of curbs on the property market, but has been encouraging investment in urban redevelopment,” he added.
The NWC announcement comes as Beijing pushes for more urbanisation. The central government is keen on people moving from rural areas to work and live in China’s cities. It, therefore, comes as no surprise that private developers are thronging to urban renewal projects. For instance, Swire Properties, another Hong Kong developer, last month announced that it was undertaking a huge urban revival joint venture project in Shanghai.
