Mitsubishi Corporation (hereinafter “MC”) has agreed to participate in a large-scale condominium development project (hereinafter the “Project”) in Dalian, China, through a joint venture with Gemdale, a leading real estate developer in China. The total cost of the Project is estimated at 66 billion JPY.
The Project will be MC’s second project together with Gemdale, which previously announced the Shenyang project.
The Project includes the development of 3,500 condominium units, as well as retail stores (34,000㎡) in Dalian, the second largest city of Liaoning province. By investing approximately 5 billion JPY through a property investment company in Hong Kong, MC will obtain a 40% equity interest in this project. In addition, MC will send a director and a full time employee to the Project company in Dalian.
MC has been focusing on continuously increasing residence demand in Dalian, mainly targeting the middle class. This Project includes plans to build low-rise buildings and spacious rooms which are rare for middle class condominiums. In addition, MC is also targeting those who are new to purchasing condominiums and those living in the city who would like to improve their living environment.
With this Project, MC plans to respond to the growing demand in China for high quality and highly functional housing, including efforts to provide condominiums with interior finished work, something that is still rarely seen in China.
MC’s real estate businesses in China are mainly the development of condominiums, commercial development, and management business. In the future, MC plans to expand its business including composite facilities through partnerships with an excellent local company and a Japanese partner as well.
＜Dalian Condominium Overview＞
Location ：Dalian City in China
Number of Units ：3,474 units for condominium project / 34,003㎡ of retail stores
Schedule ：Unit sales to begin in August 2012, and construction to be completed in 2016
＜Project Partner ： Gemdale Corporation Overview＞
Company Name ： Gemdale Corporation
Established ： January 1998
Headquarters ： Shenzhen Guangdong
Sales ： CNY 30,900 million in 2011
Employees ： Approximately 9,400
Business ： Development and sale of condominiums and retail properties, real estate
management, and asset management.