Implementation of High-Rise Condominium Development Project in Shanghai

Dec. 26. 2005
Marubeni Corporation

Marubeni Corporation is pleased to announce that it will implement a development project of a condominium with about 1,100 residences, in cooperation with Sumitomo Corporation and the Michinoku Bank Ltd.

Under this project, the stake of Shanghai House New City Development Co., Ltd. (Development Company) that owns the development land in the Minhang district in Shanghai are held by three parties. The party with the largest share is Shanghai House Property development Co., Ltd. (Shanghai House) with 70%, which was established jointly by Marubeni corporation and a Shanghai developer, Shanghai T&L Enterprises Co., Ltd.. The other two parties are Sumitomo Corporation with 20% and the Michinoku Bank Ltd. with 10%. The president of the Development Company will be appointed from Shanghai House and the Development Company will subcontract the development operations, including planning, construction supervision and sales, to Shanghai House.
A groundbreaking ceremony was held at the construction site on December 17.

he summary of the project is as follows:

  1. Name of the project : Lu Ming Garden
  2. Construction site     : Xin Zhuang Town, Minhang District, Shanghai
                                      (about 15 km south-west of the center of
                                       Shanghai city, located in front of  Xin Zhuang
                                       Station, a terminal on the Subway No.1 Line,
                                       which directly connects the city,
                                       and automated guideway system No.5, 
                                      which extends to the suburban residential areas) 
  3. Site area  : 60,307 m2
  4. Floor space  : 120,614 m2
  5. Total number of condominiums  : 1095
  6. Structure  : Reinforced concrete, 17 stories above the ground 
                     (11 stories partially above ground)
  7. Total project cost : about JPY 11 billion

It is expected that the condominiums in this project will be sold in two phases. The first phase will be in autumn 2006 and the second in autumn 2007. The project targets middle income earners who have the greatest propensity for purchasing houses, with a core condominium type of 2LDK with a floor space of 100 m2 at a price of around RMB 900,000, or about JPY13 million. The sale of condominiums at the lock-up stage with no internal finishes has been the most popular in China. However, in this project, the sale of some condominiums with internal finishes will be considered.

Since its establishment in 1998, Shanghai House, which has led the implementation of this project, has developed and sold 2,572 condominiums and houses in the Shanghai area, consisting of 928 townhouses in Sakura Garden and 1,644 condominiums in Phoenix City. In addition, in September this year, it started selling 221 detached houses of Kirin Garden and sales have been progressing successfully. Furthermore, Shanghai House is the first Japanese general developer that entered the market and now manages the whole process of developing houses from planning to construction and sale. It has made steady progress in this area. It has affiliated companies, including real estate and mediating agents and has conducted sales of about 22,000 m2 of office buildings.

Marubeni Corporation aims to strengthen the housing development and sales business and to expand the business related to the real estate with Shanghai House as a core entity. The alliance of the project was forged between Sumitomo Corporation, which was seeking an opportunity to take part in the real estate business in China, and the Michinoku Bank Ltd., which was aiming to strengthen its business in China. 

Marubeni Corporation has set a policy of actively participating in housing development projects in other parts of China in the future.

[Corporate profile of Shanghai House]

Name             : Shanghai House Property development Co., Ltd.

Address          : Floor 5 No. 900 Huai hai Rd. (M.), Shanghai, PRC

Established     : July 1998

Capitalization   : USD18,350,000

Chairman        : Hitoshi Matsukawa (Marubeni Corporation)

President        : Xue XiaoLu (Shanghai T&L Enterprises Co., Ltd.)

Website          : http://www.shanghai-house.com

LuMing Garden

[ Image : LuMing Garden ]

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