Aug. 06, 2010
Sumitomo Corporation joins into large-scale real estate development in Shanghai
Sumitomo Corporation ("Sumitomo"; head office: Chuo Ward, Tokyo; president and CEO: Susumu Kato) has been granted approval to participate in a large-scale real estate development project currently under way in Shanghai, China, with Sumitomo Corporation China by investing to SHANGHAI YIHAO REAL ESTATE CO.,LTD. Sumitomo, whih has worked actively in the real estate industry both in Japan and overseas, will take this opportunity as a chance for further growth and will extend its business in Chinese market.
This large residential and commercial complex, named "Oriental Palace", consists of 39 single-family homes, six town houses (three to four stories each), three condominium buildings (22 to 30 stories) and one commercial facility building (three stories) on an approximately 92,000-square-meter site on the outskirts of Shanghai (Malu Town, Jiading District). Located in an environment with lush greenery and easy access to the newly opened Shanghai Metro Line 11, the project will provide a total of 636 dwelling units, including condominiums for middle-income families and homes targeting the wealthy, at broad range of prices. The complex is scheduled for completion in June 2013.
The participation to the Shanghai complex development was proposed by our partner, which values Sumitomo's know-how and expertise on residential property development that have been cultivated through the CLASSY HOUSE apartment business in Japan. Prior to receiving official approval from the Chinese government for the joint venture, Sumitomo had already been involved in the project for two years, providing support for local developers in form of expertise for the part already under construction.
In the central areas of most large cities in China, it is getting difficult to have future aspects on real estate market, partially due to government measures to control investment, following serious supply shortages and soaring housing prices as a result of mushrooming housing demand in the urban centers. Using its professional know-how, hwever, Sumitomo is able to move forward in spite of such uncertain market trends, as it did when it used its extensive business networks to acquire the project site before prices for real estate in the region spiked. Also by making full use of its expertise and know-how on risk management, quality assurance, product planning and marketing, the company seeks to ensure that the project will offer quality property for fair prices. Sumitomo will continue to expand and boost its real estate business in China, while carefully observing government policy and the regional market trends, thus contributing to the improvement of the country's residential situation.
Location: Malu Town, Jiading District, Shanghai,China
Site area: 91, 823m2
Total project cost: Approx.1 billion yuan (Approx. 13 billion yen)
Total floor space: 99,447 m2
Complex composition: 39 single-family homes; 6 town houses (3-4 stories); 3 condominium buildings (22-30 stories); 1 commercial facility building (3 stories)
Number of dwelling units: Total 636 (single-family home: 50; town house: 72; condominium: 514)
Scheduled for completion: June 2013 (Some single-family homes and town houses are already available for purchase)
Sumitomo Corporation's major real estate development projects
- Residential land development, Atlanta, Georgia (Approx. 2,200 lots sold out)
- Condominium development, Shanghai (Lu Ming Garden, 1,158 units sold out)
- Apartment development, including the CLASSY HOUSE series, which has provided a total of approx. 42,000 units
- Complex facilities development in the Hanshin Mikage Development area, Kobe City, Hyogo Prefecture
Image: Oriental Palace (left). Single-family home (Right above), Town house (right below)
Corporate Communications Department,