Evergrande to Bet RMB 15 Bil on Harbin Tourism Project

By Michael Cole On January 21, 2012 · Leave a Comment

China’s government is encouraging consumer spending — on everything except housing, so it makes sense that the country’s residential real estate developers are diversifying their investments.

For Evergrande that means making a deal with the government of Harbin to develop a RMB 15 billion resort development in this second-tier city in northeastern China’s Heilongjiang province.

According to a Bloomberg story,

Evergrande announced the deal in a statement, saying it had struck a strategic investment agreement with the municipal government of Harbin, the capital of Heilongjiang province. No timeframe was given for the investment, which will include a theme park, shops and a hotel.

The company, which is headed by Xu Jiayin — said to be one of China’s 10 wealthiest billionaires, is the second largest real estate developer in China by sales volume.

In the past, the company has focussed on residential developments in China’s second and third-tier cities, however, given the flat outlook for such investments in 2012, the company appears to be looking for new opportunities for profit.

In other headlines today, Hang Lung Group’s Chairman, Ronnie Chan spoke with Bloomberg TV about China’s real estate market.

Speaking about when he thought the government might lift restrictions on residential housing, Chan commented:

“If I were them, I’d be cautious too,” he said. The measures “have loosened a bit. But on the other hand, what assurance will they have that prices will come down on a sustainable basis.”

Of course, Bloomberg did not comment on whether Chan had a hotline to Beijing to keep him up to date on changes in the regulations, or why a retail developer would know much about housing, but TV is about entertainment — not logic.