CapitaLand Limited announced this week that its plans had been accepted by the Chongqing Government in China to develop a 817,000 square-meter mixed use development that will cost 6,536 million yuan (or US$3.15 billion). The project is being developed by a joint venture between CapitaLand, CapitaMalls Asia Limited, and Singbridge Holdings and will comprise residential, retail, office and hotel properties. Acccording to a Wall Street Journal report, the project—to be built over five years—will be funded with debt and equity. Including the land, the total development cost of the project is expected to be about 21.1 billion yuan (about $4.1 billion).
"The availability of credit is still there but it has gotten a little bit more expensive," CapitaLand Chief Financial Officer Arthur Lang said. "In the past, we would have gotten probably a 10% discount to the [People's Bank of China] reference rate; now we're getting probably a 10% premium to PBOC."
Designed by architect Moshe Safdie, the development’s design inspiration took the form of "powerful sails upon the river, symbolising a great city surging forward". The development will be linked to the key districts of Jiangbei and Nan’an by bridges, which are expected to be completed around 2013.
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