Mainboard-listed Ying Li International Real Estate has signed a memorandum of understanding with Chongqing City Shangfu New Area Administrative Committee and Chongqing Hardware & Electrical Industry to develop a new mixed-development property.
The project is a one-stop hardware and electrical appliances hub known as Ying Li International Hardware and Electrical Mall.
It will be located at Shuangfu neighbourhood in Jiangjin District, on the border of Chongqing's inner and secondary ring, which has a population of over 150,000.
The company said the development 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.
The types of properties to be developed comprise high-grade retail shops, hotels, residential and a logistics distribution centre. The planned total gross floor area of the project is 1.6 million square metres and the initial investment of the project is estimated to be around RMB1.8 billion (S$390 million).
The project will be constructed in three phases and take around two to three. Phase One will use up around 200,000 sqm the total land area, while phases two and three will share the remaining 467,000 sqm.
Ying Li said it will be retaining some of the premium completed developments as investment properties, in line with its strategy of enhancing its investment portfolio.
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. It will leverage on the network and reach of the CHEIAA to achieve an optimal selling rate before bidding for the project. Currently, the company has registered interests from more than 900 prospective buyers representing a sellable GFA of 500,000sqm.
Said Mr Fang Ming, group chairman and chief executive officer: "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."