International Commercial Property Tycoon to Involve in SIP Service Industry
On Sept. 25, Wang Jinhua, Deputy Secretary of CPC Suzhou Municipal Committee and Secretary of SIP Party Working Committee, met a group of guests headed by Herbert Simon, Aligned Executive Chairman of Simon Property Group of the US, and David Simon, the CEO. Along with the group in the visit were General Manager Ding Liye of Shen Guo Investment Commercial Property, and Roy Kwok, Vice-president of Morgan Stanley China Division.
In July this year, an agreement on commercial property development was signed by Shen Guo Investment Property Co., Ltd., Simon Property Group of the US, and Morgan Stanley Real Estate Fund (MSREF) to establish a joint venture, with equity shares held in 35%, 32.5%, and 32.5% respectively by the three parties. The cooperation projects are all multi-story shopping malls in downtown areas in the Yangtze delta region (including Shanghai, Nanjing, Hangzhou, Suzhou, etc.) with an area of 40,000 to 70,000 square meters in each. Wal Mart will be the predominant item in each of the projects, and many of them will contain a Warner movie theater. Shen Guo Investment Commercial Property will work with Wal Mart and Simon Property Group to invest in the “Shen Guo Investment Commercial Center”, and turn it into a bulky complex of large shopping malls, deluxe general stores, restaurants, and entertainment facilites. The ‘center” is planned on 4.6 hectares of land with a constructed area of 130,000 sq.m. (including underground areas), and will be opened in 2006. In the current business visit, the land parcel was confirmed, and Herbert Simon and the group expressed satisfaction over the geographical location and master plan of the project, and confidence on the planning and development in the east of Jinji Lake.
Simon Property Group, the largest trust and investment corporation in commercial property in the US, is engaged in the investment, development, and management of commercial properties, including regional shopping malls, name-brand discount stores, shopping and entertainment centers. The current market value of the corporation stocks amounts to some 39 billion US dollars. Under the ownership of the corporation are over 300 properties, 52 shopping malls in France, Italy, Poland, and Portugal, 5 name-brand discount stores in Japan, and one shopping mall in Canada. Morgan Stanley (NYSE: MWD) is an international financial institution and a leader in the market of securities, investment management, and credit card service. Its subsidiary, Morgan Stanley Real Estate Division, has acquired a total amount of 67.7 billion US dollars of real estate across the world.
The project of Suzhou Commercial Center invested and constructed by Shen Guo Investment Commercial Property, and the involvement of Simon Property Group in SIP service sector, have posed a new stance of the international commercial development trend, and invigorated the development of the service industry in SIP, which will arouse more interest of commercial investors in the rapid growth of service industry in SIP.
Sept. 28, 2005