China Merchants Property Expanding in Shanghai

SHANGHAI, Jan 02, 2008 (SinoCast China Financial Watch via COMTEX) -- CMSHF | charts | news | PowerRating -- China Merchants Property Development Co., Ltd. (CMPD and SZSE: 000024) has just bought into a villa project in Shanghai and is weighing the acquisition of another property in the eastern Chinese metropolis now.

It indicates that CMPD has cast its eye to the used land market in Shanghai, just as other real estate titans have.

For CNY 353 million, a Shenzhen-based CMPD subsidiary has catpured a 60 percent stake in Shanghai Fengyang Real Estate Development Co., Ltd., which is responsible for Hyde Garden, a high-end residential real estate project in the Baoshan District of Shanghai.

The project is designed to cover a total land area of about 385,300 square meters. The apartments in the first phase have been sold out and those in the second phase have started marketing at the prices ranging from CNY 11,500 to CNY 25,000 per square meter.

Fengyang Real Estate was a 60-40 joint venture formed with a total registered capital of CNY 30 million in September 2002 by Shanghai Meiyang Property Co., Ltd. and CIMC Shenfa Construction Industry Co., Ltd., two affiliates of China International Marine Containers (Group) Co., Ltd. (CIMC).

Notably, the venture??s net assets had totaled CNY 587.0429 million by September 30, 2007, according to Pan-China Schinda Certified Public Accountants.

Besides, CMPD is coveting another used land project on the skirts of Shanghai. It will likely take over the project from a local developer, which has been plagued with financial troubles, told industry insiders.

Merchants Property, a state-owned integrated property company, is engaged in property design & development, property management, project supervision as well as properties renting.

It was known as one of the top 10 Chinese listed property companies by overall strength during the period from 2002 to 2006, and stood among the three local best property developers in Shenzhen, the economic hub in Southern China, for four consecutive years.

In 2006, the company reaped rentals of CNY 306 million, jumping increased 30.17 percent from a year ago. Its rented property areas measured 5.374 million square meters, marking a year-on-year increase of 13.77 percent.

CMPD has marched into the commercial property sector in Shanghai since the 1990s. It has erected two eyecatching commercial buildings respectively in the city??s Puxi and Pudong districts.

Later, it has developed a villa project named Dream of Evian. In the city, it is also working on some medium-end projects, including a proejct in the Minhang District it acquired in 2006 for CNY 534 million.

(USD 1 = CNY 7.30)

From www.stocknews.com.cn, Page 1, Tuesday, January 01, 2008 info@SinoCast.com

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