Capital Strategic to invest RMB 2 bln in Shanghai properties

Jul. 15, 2009 (China Knowledge) - Capital Strategic Investment Ltd<0497>, which is engaged in real estate investment and security trading, plans to spend RMB 2 billion purchasing properties in Shanghai in the next three years, said Non-executive President Mico Chung Cho-yee, sources reported.

Mico Chung on Jul. 13 said that the Hong Kong-based firm is considering purchasing two or three projects in Shanghai but currently has no definite land purchase plans because land prices are high. The company also hopes to obtain a rate of return of 7% or 8% in rented properties in mainland China.

On Jul. 13, Capital Strategic started to lease a Shanghai-based property located in Hongkou District, which covers a floor area of 56,859 square meters (sq m). In November 2006, Capital Strategic and Lehman Brothers purchased the project, which was uncompleted at that time, for HK$416 million.

Reportedly, Capital Strategic also holds a 50% stake in another property located on Nanjing West Road, Shanghai.