Mitsubishi Corporation (hereafter MC) has agreed to participate in a large-scale condominium development project in Shenyang, China (total project cost estimated at 60 billion JPY), through a joint venture with Gemdale, a leading real estate developer in China.

 

Last June, MC and Gemdale signed the MOU　for strategic partnership in the real estate business in China. The project in Shenyang is the first to be launched since the start of the collaboration.

 

This project includes the development of 4,000 units of condominium, as well as retail stores (28,500㎡) in Shenyang, the capital and largest city of Liaoning province. MC will invest approximately 5 billion yen (Company name: SHENYANG RONGYAO REAL ESTATE LIMITED， share ratio: Gemdale 51%, MC 49%) through a property investment company in Hong Kong. In addition, MC will send 2 directors and 2 full-time employees to the project company in Shenyang.

 

Shenyang has a population of approximately 8 million, and its economic growth as the center of northeast China in recent years is notable. MC plans to leverage the solid housing demand spurred by rapid population growth and increasing urbanization. The condominium project targets the middle-class population, where demand for housing is high. 

 

MC has identified China as one of its strategic regions, as highlighted in its Midterm Corporate Strategy 2012 announced last year. MC’s priority is to expand its business by investing its resources in these regions. In China, MC has started to engage in various types of real estate businesses. Beginning with a commercial development and management business in Tianjin announced in June, MC plans to expand its business in the development of condominiums and logistics facilities, as well as the development and operation of retail properties, whilst working closely with competitive partners in respective projects.

 

 

＜Shenyang Condominium Overview＞

Location              ： Dadong district, Shenyang City in China

Scale                   ： 198,205.9㎡

Number of Units： 4,004 units for condo projects / 28,508㎡ of retail stores

Time-line             ： The first phase is to be completed in November 2011, and final phase in 2016.

Shares                 ： Gemdale 51%, Mitsubishi Corporation 49％

 

  

＜Overview of Gemdale Corporation＞

Company name： Gemdale Corporation

Established       ： January, 1998

Headquarters    ： Shenzhen, Guangdong

Sales                   ： 19,600 million CNY in 2010

Employees         ： 8,262

Business            ： Development and sales of condominiums and retail properties, real estate   

management, asset management and others