It said this week that it has signed a Memorandum of Understanding with Chongqing City Shuangfu New Area Administrative Committee and Chongqing Hardware & Electrical Industry Association Alliance (“CHEIAA”) to develop a new mixed-development property.
Located in Jiangjin District, the project is a one- stop hardware and electrical appliances hub to be known as Ying Li International Hardware and Electrical Mall.
Unlike the luxurious condominiums and commercial and office towers that Ying Li has been known for in Chongqing, the new project will comprise high-grade retail shops, hotels, homes and a logistics distribution centre.
The Gross Floor Area (“GFA”) of the project is 1.6 million sq m and the initial investment is estimated to be around RMB1.8 billion.
The project is in line with Chongqing government’s intention to relocate more than 180 medium and large sized enterprises from Chongqing’s Central Business District to the secondary ring of the city.
A built-to-order (“BTO”) wholesale centre, the project's facilities are specially tailored to buyers’ requirements, and deposits will be collected upfront prior to the commencement of the project.
In order to secure more buyers for the project, Ying Li has formed a strategic alliance with CHEIAA, which consists of 9 trade associations. Currently, there is registered interest from more than 900 prospective buyers for a sellable GFA of 500,000 sq m.
The Group’s new project will be constructed in three phases and take 2-3 years. In line with the Group’s existing strategy to enhance its investment portfolio, the Group will be retaining some of the premium completed developments as investment properties.
Mr. Fang Ming, Chairman and CEO of the Group, commented, “We are adopting a creative and low risk business model for this project. As this project will be tailor-made to our buyers’ requirements, we will be securing buyers and customising the project to cater to their needs before developing the project. This also allows cash generated from deposits to be used in our construction phase.
"We continue to see opportunities in Chongqing as the local government continues to lay out plans to further develop and restructure the city. We will leverage on our strong presence and track record to strengthen our foothold in Chongqing city while venturing into other first and leading second-tier cities.”
The project is strategically located in the Tongzhou New City Canal Core Area, which is the secondary Central Business District (“CBD”) of Beijing and is merely 18 kilometres away from Beijing’s CBD and 16 kilometres from the Beijing Capital International Airport.
Mr Fang Ming, Chairman and CEO of Ying Li, commented, “This is an exciting and significant milestone for Ying Li as this is our first project out of Chongqing City. It is a good start for our alliance with China Everbright. We believe that this project will benefit from the integration of the metropolises of Beijing and Tianjin with Hebei province due to its strategic location."
The Group will invest RMB559 million, or approximately S$121 million, to participate in the Beijing Tongzhou Project, while the Group will partner with CEL and other joint investors to invest RMB7.2 billion altogether in the Beijing Tongzhou Project.
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