BEIJING, June 14 (Xinhua) -- Beijing-based real estate company Huayuan Property Co Ltd joined hands with Joy City, a commercial brand under the COFCO Property (Group) Co, on Monday.
The move came amid tightening regulations on commercial properties. Industry insiders believe such cooperation will help Huayuan prevent potential risks and lead to more similar collaborations in the industry.
On March 26, Beijing housing authorities tightened regulations on commercial real estate projects as a way to cool down a housing market with soaring prices fueled by speculative buyers.
New commercial real estate projects, including those converted from office buildings to individual units, may be sold only to qualified enterprises, public institutions and social organizations. Moreover, personal loans for purchasing commercial real estate also have been suspended.
"Such tightening measures will highlight the real value of those strong brands in operating shopping malls and offices, and teaming up with those quality brands is definitely a win-win choice for property developers," said Zhang Dawei, an analyst with Centaline Property.
The first collaboration between Huayuan and Joy City will build the third Joy City shopping mall in Shijingshan district of Beijing.
Zhang said the two companies will deepen their collaboration in commercial property development, management and operation.
Targeting young consumers, the Shijingshan project will be located in west Beijing, combining a shopping mall, high end office building and parking lot. The project is scheduled to start this year and be completed by 2019. (chinadaily.com.cn)
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