MEMBERS NEWS

Gide assists Gerflor in Jiangsu

Gerflor Group, a world specialist in floor coverings, has just set up a production unit in Jiangsu backed by Gide Loyrette Nouel's China team. Gide Loyrette Nouel Shanghai team advised Gerflor Group in its negotiations with the Chinese authorities and the Changshu development zone for the purchase of land and application for state investment grants. Gide also assisted Gerflor in its factory construction program and to arrange local financial solutions. Gide's Shanghai-based team responsible for Gerflor included partner David Boitout and senior lawyer Bruno Grangier.

Knight Frank appointed to lease high-end villas

Knight Frank Shanghai was appointed by China Vanke as the principal leasing agent for its high-end Rancho Santa Fe and Stratford residential developments in Minhang district in Shanghai. Luxury residential leasing continues to be strong as the number of expatriates living in Shanghai rises. By the end of April this year, the total registered number of expatriates in Shanghai reached approximately 57,000, compared with approximately 51,000 for the same period of the previous year. "Of these 57,000 expatriates living in Shanghai, a quarter of them rent luxury homes with monthly rental ranging from US$3,000 to US$10,000 (€2,200-7,400). Expatriates accounted for over 90 percent of the total luxury residential leasing market in Shanghai," said Larry Hu, head of Knight Frank Shanghai's residential division. "We are very excited to handle the leasing matters of Rancho Santa Fe and Stratford. Although Stratford will not be launched to the market till September, we are confident that both of the developments will attract strong interest. Since the launch of Rancho Santa Fe in late 2003, the development has been well received and over 90 percent of its tenants are expatriates from American and European firms in [the] Fortune 500."

Savills signs US$185 million deal in Beijing

Property services provider Savills announced its involvement in the sale of the Times of Fortune mixed-use development in Beijing for over US$185 million (€137 million). Savills Beijing was initially appointed by the seller to provide investment consultancy services in April 2006 and later appointed lead agent. Shimao Property Holdings bought the property, located in the Sanlitun area in Beijing's Chaoyang district, with excellent accessibility and visibility. Sanlitun is growing into a high-end retail and recreation centre, especially with the completion of a series of notable projects such as New Sanlitun and China View. Times of Fortune is due to be completed in 2009 or 2010. "This is Savills' first major investment deal in Beijing, and I am confident that it is the start of even better things to come," said Randall Hall, CEO of Savills Greater China.

AstraZeneca ups China-made ingredients

Pharmaceutical firm AstraZeneca announced plans to increase the amount of active ingredients it outsources to Chinese companies tenfold. The move will mark the first time the company has used Chinese contractors to produce the active pharmaceutical ingredients (APIs) it uses in its own branded drugs. The APIs will be produced in China and shipped outside the country for pill assembly and packaging. Among the ingredients to be made by Chinese partners is quetiapine, the active ingredient in Seroquel, the company's second-best-selling drug, used to treat schizophrenia and bipolar disorder. AstraZeneca is confident that China-made APIs will be as safe as those made anywhere else, said Marc Jones, AstraZeneca's vice-president of global sourcing

CBRE partners with Galaxy on Shenzhen project

Galaxy Real Estate recently announced that it has entered into a strategic partnership with CB Richard Ellis in relation to the Galaxy Centre in Shenzhen, a new mixed-use complex in the city's central business district. The project is being developed by Galaxy Real Estate, and has a total gross floor area of over 120,000 square metres, including office, retail and hotel space. Galaxy Real Estate has also entered into an agreement with Ritz-Carlton Hotels, a world renowned hotel management company, to manage and operate the hotel within the development. The structure associated with the Galaxy Centre was topped out on June 30, 2007. Leasing began in mid-August; the project is expected to be fully operational by mid-2008.

Knight Frank active in Waigaoqiao FTZ

Knight Frank recently sold a 10,000-square-metre mixed-use property in Shanghai Waigaoqiao Free Trade Zone (FTZ) to a company connected with Shanghai Electric for its own use. This transaction was unusual, as demand for properties combining an office building with a manufacturing facility is not strong. However, as business operating costs go up in China, companies are becoming more cost-conscious and looking for more flexible space. "This type of property allows the occupant to have control over the flow of goods, information and other resources, from the source of production to the marketplace, which can improve the cost-effectiveness of the occupying company," said Andrew Slevin, executive director of Knight Frank's Shanghai office. The property included a six-storey, 8,700-square-metre office/warehouse building and a one-storey, 1,200-square-metre production unit.

HSBC taps rural China

British banking giant HSBC will be the first foreign institution to launch a bank in central China. HSBC will invest US$1.3 million (€950,000) to set up HSBC Rural Bank Co under its Hong Kong & Shanghai Banking Corp subsidiary in Suizhou, central Hubei province by the end of the year. "We think the rural market is under-banked and offers opportunities," said a spokeswoman for the bank. Suizhou County has 2 million people, and the bank said it was chosen for its high economic growth rates and mix of agricultural and industrial activities.

CDB aids in ABN AMRO takeover

China Development Bank (CDB) emerged as a key figure in a bid by British bank Barclays to take over Dutch bank ABN AMRO. CDB will buy 201 million Barclays shares for €2.2 billion with Temasek, the Singapore government's investment arm, taking a further 135 million shares for US$1.9 billion. This will enable Barclays to increase its offer for ABN AMRO by €4.1 billion to €68.89 billion, although this still leaves it short of the €72.37 billion being offered by a Royal Bank of Scotland-led consortium. If Barclays is successful, CDB and Temasek will together buy another €9.8 billion of shares in the bank. CDB's portion could end up representing the largest overseas investment made by a Chinese company to date.