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| Tiarn Group and Homestar Taking the Lead in Industrial Real Estate Investment |
June 6, 2007 |
| As the No. 1 platform for auto industry in the middle China, Tiarn Industrial Park has been arresting investors’ attention. In the October of 2006, the project of Tiarn Industrial Park started in Changfu Satellite City, New District of Wuhan. So far, the first phase of seven comprehensive workshops has been completed and the whole project is on smooth track. The Park will go on sale in the end of June of this year. According to plan, this Park will become a cluster of more than 300 auto parts enterprises with an annual output of 2.2 billion in the next three years. Cooperation between Tiarn and Homestar has caught the attention of this industry. Homestar is a local successful second-hand housing broker. Tiarn, which rose in xiangfan, is a real estate investor expanding into Wuhan. In 2006, it was recognized as a famous real estate company in Wuhan. Then what contributes to their cooperation? In 2006, Tiarn group announced its expansion into Wuhan market and bought a land covering an area of 1.1 thousand mu in the New District of Wuhan in a bid to build the No.1 platform of auto industry in middle China, Wuhan Tiarn Industrial Park. When it comes to the reasons for Tiarn’s expansion into Wuhan to develop this project, Liu Dandan, an executive of Tiarn, said, “The growth of Tiarn surely will not be confined to a secondary city. Our target is to develop real estate in a comprehensive manner in Hubei province. Industrial real estate, which has just caught the attention of real estate investors recently, is developing very rapidly in Beijing and Shanghai. The Blue Paper on the Competitiveness of China’s Cities studies 50 cities in terms of their potential in industrial real estate. Wuhan tops the list among the cities in middle and west China. Now, industrial real estate remains in its infancy. Besides, auto production is the pillar industry for the development zone. So this will guarantee a bright future and profitability for this project. The average price of the first-phase project is RMB 1,680 per square meter, equal to cost. But this price is temporary. Starting from this year, the price of land used for industrial purpose has increased to over RMB 250 thousand per mu, and you have to reach a certain amount limit in buying land. Also, there is not much land available in Dunkou for development. So everybody can predict the future land cost and price of buildings.” Liu added that this project had its own strengths. “Tiarn is a comprehensive real estate investor which has developed various properties such as residential, commercial buildings and industrial parks. Tiarn has gained experience and resources by building Xiangfan Tiarn International Automobile City. Tiarn Industrial Park also enjoys many advantages. It is located near the intersection of the Beijing-Guangzhou and Shanghai-Chengdu highway and 318 National Highway. And it’s only ten minutes ride from here to the headquarters of Dongfeng Motor Group. Many large-scale manufacturers are also located here, such as TPV, Haier. So transportation is very convenient. Next year another viaduct will be constructed to shorten the distance. Various products are manufactured in this park, which enjoys perfect supportive facilities. It is my firm belief that our investment in Tiarn Industrial Park will have a bright tomorrow.” Peng Binbin, Homestar general manager assistant and executive of marketing, said that low-price land is very attractive to foreign capital. The low cost of land and human resources in the New District of Wuhan has attracted many investors from Jiangsu and Zhejiang. Of 70 companies intending to buy land from Homestar, 10 to 20 percent are non-Wuhan investors. Dongfeng Peugeot Citroen Com. Ltd purchased only 30 percent of their parts from Xiaogan, Xiangfan and Suizhou in Hubei province. They spoke of One-hour Supply Chain on many occasions, expecting supportive companies to concentrate in Wuhan for development. Other auto magnates such as Dongfeng also suffer from lack of supportive companies in the proximity, which is an opportunity for auto-related industry and auto industrial parks. According to Mr. Liu, an executive of Tiarn, the cooperation between the two companies is the result of the overall strategy of the Tiarn, which will certainly unite with a competent partner when its growth is on rapid track. Cooperation with Homestar, which boasts perfect experience and channel of marketing, is part of Tiarn transformation strategy. Since 2003, Homestar’s overall strength has been much improved thanks to its rapid growth and absorption of many talents. At this moment, Homestar decided to enter real estate market. The bright future of Wuhan industrial real estate and Dunkou district explains why Homestar chose Tiarn Industrial Park as its partner. It is believed that this project will take the lead in the development of industrial real estate. http://news.fdc.com.cn/lsztc/72083.htm |
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