Press Releases

Tokyo, Oct 7, 2009 (ABN Newswire) - Mitsui Fudosan Co. (TYO:8801) will partner with the Chinese apparel firm Shanshan Group Co. to open an outlet mall with famous brands as tenants in the city of Ningbo in the Zhejiang Province as early as 2011.

The joint venture of the two companies will conduct the outlet mall on land under a 40 year lease. Mitsui Fudosan is expected to invest several billion yen in the project, about 36% of the costs. The venture has already filed with the municipal government for a building permit and expects to break ground early next year.

China saw a growth in its real estate market this year, even in the wake the global financial crisis. Mitsui Fudosan will also consider participating in a housing development project in Tianjin.

According to the National Bureau of Statistics, housing prices in 70 large and medium sized cities in China was 2 per cent higher in August than in the same period last year. Foreign investments in China's property market retreated since the global financial crisis, as the international financial firms sold properties to secure their liquidity. But there are signs that overseas funds are returning to the fast growing China market while house prices in China's major cities rebounded unexpectedly and strongly in recent months.

Mitsui Fudosan has upgraded its Shanghai representative office to a subsidiary. The move shows that the company could see the China expansion as pivotal as a growth in Japanese market is hard to achieve.

Contact

Michelle Liang Asia Business News Asia Bureau Tel: +61-2-9247-4344 Email: michelle.liang@abnnewswire.net