May. 15, 2012 (China Knowledge) - China Railway Group Ltd<601390
>, the country's largest railway and highway builder, has announced plans to joint-bid with Zhonghong Real Estate Co Ltd<000979> for a tourism property project in Haikou
According to the plan, a joint venture is to be launched by the two bidders, and the Shanghai
and Hong Kong-listed
railway builder would hold a 55% stake in the JV.
The tourism property project, which is designed to built on an artificial island that is 4.4 kilometers away from the east coast of China, will cover a land area of around 6.12 square km that could attract about 5 million tourists per year, with annual tax totaling RMB 800 million to RMB 1 billion.
China Railway had constructed large-scale mixed-use property project in Sanya
Province, with land transaction fee of RMB 1.68 billion the company spent in 2009. The plot cost RMB 8,460 per sq m of potential floor area, lower than the average price of RMB 9,526 per sq m in Sanya
in the first half of 2009, said analysts.
Officials in China Railway had earlier disclosed that the company's real estate division will focus on tourism properties in Hainan